Andrew C. Hove, Jr., Chairman 

Division of Research 

& Statistics 

Statistics Branch 

First Quarter 1997 COMMERCIAL BANKING PERFORMANCE — FIRST QUARTER 1997 

• Quarterly Earnings Of $14.5 Billion Eclipse Previous Record 

• Industry ROA Is Fourth-Highest Ever 

• Higher Noninterest Revenues, Lower Overhead Expenses 

Boost Industry's Bottom Line 

• Average Net Interest Margin Declines To Lowest Level Since 1991 

Insured commercial banks reported net income 

totaling $14.5 billion in the first quarter of 1997, 

surpassing their previous quarterly earnings record by $651 million. First-quarter earnings represented a $2.5-billion (20.4 percent) improvement 

over the first quarter of 1996, and were $773 million (5.6 percent) higher than in the fourth quarter 

of 1996. The annualized return on assets (ROA) 

in the first quarter was 1.26 percent, the fourthbest quarterly average that the industry has reported. More than 96 percent of all banks were 

noninterest expense declined by $136 million. 

These improvements were partially offset by 

higher loan-loss provisions, which were up by 

$673 million, and by lower income from sales of 

securities and other extraordinary items, which 

contributed $147 million less than in the first 

quarter of 1996. 

Noninterest Income Provides a Growing Proportion 

of Net Operating Revenue, 1984 - 1997 

Noninterest Income, 

% of Net Operating Revenue* 

40 

profitable, almost two out of every three banks 

(61.9 percent) reported higher earnings than a 

year ago, and more than two out of every three 

banks (68.8 percent) had an annualized ROA of 

one percent or greater. 30 

Operating revenue growth and reduced overhead expense helped lift industry earnings. Noninterest income was $2.6 billion (11.6 percent) 

higher than a year ago, while net interest income 

was $2.2 billion (5.5 percent) higher. In contrast, 

24.7 

37.0 

Quarterly Net Income, 1993 - 1997 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 20 

$ Billions * Net operating revenue equals noninteres income plus ne interest income. 

15 

FDIC 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 

10.8 10.3 

11.5 

10.8 11.1 11.2 

11.8 

10.7 11.1 

12.0 

13.8 

12.0 12.0 

13.8 13.2 13.7 

14.5 

Net Operating Income 

Securities and Other Gains, Net Higher fee income accounted for roughly half of 

the increase in noninterest income. Total noninterest income now represents more than onethird of commercial banks' net operating revenues 

(the sum of net interest income and noninterest 

income). The proportion is considerably higher at 

large institutions than at smaller ones. In the first 

quarter, noninterest income provided 37.9 percent of net operating revenue at banks with assets 

greater than $100 million, while at banks with less 

than $100 million in assets, noninterest income 

accounted for only 21.8 percent of net operating 

Don Inscoe 10 

Associate Director, 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

5 

0 

1993 1994 1995 199 6 1997 revenues. 

Requests for copies of and subscriptions to the FDIC Quarterly Banking Profile should be made through the FDIC's Public 

Information Center, 801 17th Street, NW, Washington, DC 20434; telephone (202) 416-6940 or (800) 276-6003. 

Also available on the Internet at www.fdic.gov. Comparable financial data for individual institutions can now be obtained from 

the FDIC's Institution Directory (I.D.) System on this Web site. 
The decline in noninterest expense was attributable to 

an unusually high level of merger-related expenses at 

several large banks a year ago. The rise in net interest 

income was due to strong growth in interest-bearing 

assets, which were 6.9 percent higher than a year earlier. The industry's net interest margin, at 4.22 percent, 

was 4 basis points lower than a year ago, and 9 basis 

points lower than in the fourth quarter. It is now at its 

lowest level since the fourth quarter of 1991. It has declined in five of the last ten quarters, and is 33 basis 

points below the peak level of 4.55 percent, reached in 

the fourth quarter of 1992. 

Quarterly Net Interest Margins, 1993 - 1997 

Net Interest Margin (%) 

4 

4.5 

5 Assets < $100 Million 

Assets > $100 Million 

4.61% 

4.19% 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 

1993 1994 1995 1996 1997 

Banks set aside $4.3 billion in provisions for loan losses 

in the first quarter, while net loan charge-offs totaled 

$4.0 billion. As has been the case since the first quarter 

of 1995, credit-card loans comprised most of the 

charged-off loans. Banks charged-off $2.8 billion in 

credit-card loans in the first quarter, accounting for 68.2 

percent of all net charge-offs. Net charge-offs on creditcard loans were $560 million higher than a year ago, 

while net charge-offs on all other loan categories combined were $113 million lower. The annualized net 

charge-off rate on banks' credit-card loans rose to 4.93 

percent in the first quarter, the highest quarterly rate 

since the second quarter of 1992. 

Noncurrent loans declined by $31 million in the first 

quarter. Reductions in noncurrent consumer loans outweighed increases in noncurrent commercial, agricultural and real estate loans. At the end of March, banks' 

noncurrent loans were $1.9 billion (6.2 percent) lower 

than a year earlier. Delinquent loans – those past-due 

30 to 89 days – declined by $387 million, as reductions 

in delinquent consumer and real estate loans exceeded 

increases in delinquent commercial and agricultural 

loans. Despite the decline in the first quarter, delinquent 

loans remained $3.8 billion (11.1 percent) higher than a 

year earlier. 

Credit Card Loss Rates and Personal Bankruptcy Filings 

1984 - 1997 Net Charge-Off Rate (%) Number of Bankruptcy Filings (Thousands) 

7 

6 

5 

4 

3 

2 

1 

0 

350 

Personal 300 Bankruptcy Filings 

Credit Card Charge-Off Rates 

250 

200 

150 

100 

50 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 

Sources: Bankruptcies - Administrative Office of the United States Courts 

Charge-Off Rates - Commercial Bank Call Reports 

Commercial banks' reserves declined by $130 million in 

the first quarter, to $53.5 billion, as new reporting instructions required banks with off-balance-sheet credit 

exposures to reallocate the portion of their reserves related to off-balance-sheet exposures into “other liabilities”. Despite the decline in reserves, the industry's 

“coverage ratio” remained at the record level of $1.84 in 

reserves for every $1.00 of noncurrent loans set in the 

previous quarter, thanks to the decline in noncurrent 

loans. Equity capital increased by $14.9 billion in the 

first quarter, to 8.40 percent of total industry assets. 

This is the highest level for this ratio since 1941. The increase in equity was achieved despite a $3.5-billion deduction for lower market values on banks' available-forsale securities. Goodwill, which is included in equity 

capital, increased by $8.0 billion during the quarter. 

Retained earnings contributed $6.0 billion, while reporting changes related to bringing bank reports into closer 

conformity with generally accepted accounting 

principles (GAAP) added an additional $4.3 billion to 

banks' equity capital (see Notes to Users, p. 21). 

Other reporting changes contributed to a $61.7-billion 

decline in banks' foreign-office loans in the first quarter. 

Previously, banks had reported federal funds sold 

through their foreign offices as loans, and had reported 

federal funds purchased through their foreign offices as 

other borrowings. Effective with the March report, the 

reported values for federal funds sold and purchased 

now include transactions in both domestic and foreign 

offices. This change was responsible for a $38.3-billion 

decline in total loans reported by commercial banks, as 

well as a $92.0-billion increase in fed funds sold and a 

$73.9-billion increase in fed funds purchased. Loans in 

domestic offices, which were not affected by the reporting change, registered a $23.3-billion increase. Commercial and industrial loans increased by $22.3 billion, 

while real estate loans increased by $16.9 billion. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 First Quarter 1997 
Arizona

1.2

California

1.0

Idaho

0.7

Nevada

1.9

Oregon

1.0

Utah

1.1

Washington

0.8

Noncurrent Loan Rates* 

March 31, 1997 

West 

Alaska

1.0

Hawaii

1.9

Greater than 1.5% 

Between .75% and 1.5% 

DC: 1.0

MD: 1.0

Alabama

0.6

Arkansas

0.9

Colorado

0.6

FL

0.9

Georgia

0.9

Illinois

0.8

IN

0.7

Iowa

0.7

Kansas

1.1

Kentucky

0.7

LA

1.0

1.4

Michigan

0.6

Minnesota

0.7

MS

0.6

Missouri

0.9

Montana

1.1

Nebraska

1.0

New Mexico

1.0

NY

1.4

N. Carolina

Tennessee 0.5

North

Dakota

1.3

Ohio

0.9

Oklahoma

1.3

Pennsylvania

1.0

S. Carolina

0.6

South MA: 1.0

Dakota

1.9

1.2

Texas

0.8

Virginia

Southeast 1.0

WV

0.9

Wisconsin

0.9

Wyoming

0.9

Puerto

Rico

2.2

Central Northeast 

Southwest 

Midwest 

Maine

CT: 1.8

DE: 2.1

NH: 1.8

NJ: 1.6

RI: 0.9

VT

1.2

* Noncurrent loan rates represent the percentage of loans that

Less than .75% are past due 90 days or more or in nonaccrual status.

Credit-card Credit-card loans had a seasonal seasonal decline decline in the first 

quarter. Credit-card Credit-card loans outstanding outstanding fell by $15.6 billion, but more than half of the decline decline was due to the securitization curitization of credit-card credit-card receivables. receivables. The amount of 

credit-card credit-card loans securitized securitized and sold by commercial commercial 

banks increased increased by $8.8 billion billion in the first quarter. 

Banks' securities securities holdings holdings increased increased by $12.2 billion, billion, 

with almost half of the increase increase ($5.9 billion, billion, 48.4 percent) occurring in mortgage-backed securities. cent) occurring in mortgage-backed securities. 

The number of insured commercial banks reporting financial results declined by 77, from 9,528 at the end of 

1996 to 9,451 at the end of March. During the quarter, 

127 banks were absorbed by mergers, and four commercial banks converted to savings bank charters. No 

insured commercial banks failed in the first quarter. 

There were 42 new banks chartered during the quarter, 

and 11 savings institutions converted to commercial 

bank charters. At the end of March the FDIC's “Problem 

List” contained 77 insured commercial banks with combined assets of $5.0 billion, down from 82 banks with 

$5.1 billion in assets at the end of 1996. 

Quarterly Credit Card Growth Rate 

1993 - 1997 

Quarterly Change ($ Billions) Quarterly Growth Rate (%) 

-100 

0 

100 

200 

300 

400 

500 

-2 

0 

2 

4 

6 

8 

10 

Unused Commitments 

Loans Outstanding* 

9.4 29.4 26.4 

45.5 54.850.661.2 

93.9 103.0 

84.6 

53.4 

105.5 

58.3 75.7 58.0 

104.3 

73.7 

Quarterly 

Growth Rate 

1 2 3 4 1 2 3 4 1234 1234 1 

1993 1994 1995 1996 1997 

*Includes on-balance-sheet loans and off-balance-sheet securitized receivables. For 1st, 2nd, and 

4th Quarter Call data before 1996, loans securitized and sold are estimated using amounts 

reported as of 9/30. 

FDIC Quarterly Banking Profile 

First Quarter 1997 3 FDIC-Insured Commercial Banks 
TABLE I-A. Selected Indicators, FDIC-Insured Commercial Banks 

1997* 1996* 1996 1995 1994 1993 1992 

Return on assets (%)................................................ 1.26 1.12 1.19 1.17 1.15 1.20 0.93 

Return on equity (%)................................................. 15.11 13.68 14.45 14.66 14.61 15.34 12.98 

Core capital (leverage) ratio (%)............................... 7.78 7.69 7.64 7.61 7.64 7.65 7.21 

Noncurrent assets plus

 other real estate owned to assets (%).................... 0.73 0.86 0.75 0.85 1.01 1.61 2.54 

Net charge-offs to loans (%)..................................... 0.58 0.55 0.58 0.49 0.50 0.85 1.27 

Asset growth rate (%)................................................ 7.74 4.67 6.16 7.53 8.21 5.72 2.19 

Net interest margin (%)............................................. 4.22 4.26 4.27 4.29 4.36 4.40 4.41 

Net operating income growth (%)............................. 22.19 4.44 6.44 7.48 16.18 35.36 92.41 

Number of institutions reporting................................ 9,451 9,838 9,528 9,940 10,451 10,958 11,462 

Percentage of unprofitable institutions...................... 3.97 3.41 4.21 3.55 3.98 4.89 6.85 

Number of problem institutions................................. 77 127 82 144 247 426 787 

Assets of problem institutions (in billions)................. $5 $13 $5 $17 $33 $242 $408 

Number of failed/assisted institutions....................... 0 1 5 6 11 42 100 

*Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

TABLE II-A. Aggregate Condition and Income Data, FDIC-Insured Commercial Banks 

(dollar figures in millions) 

Number of institutions reporting.............................................. 

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1997 1996 1996 96:1-97:1 

9,451 9,528 9,838 -3.9 

Total employees (full-time equivalent).................................... 

CONDITION DATA 

1,496,095 1,489,215 1,472,724 1.6 

Total assets............................................................................. $4,641,730 $4,578,351 $4,308,419 7.7

 Loans secured by real estate............................................ 1,155,880 1,139,012 1,089,769 6.1

 Commercial & industrial loans........................................... 732,127 709,866 675,877 8.3

 Loans to individuals........................................................... 543,737 561,936 524,290 3.7

 Farm loans........................................................................ 39,332 41,324 38,040 3.4

 Other loans & leases......................................................... 306,797 364,254 310,041 -1.0

 Less: Unearned income.................................................... 5,119 5,308 5,614 -8.8

 Total loans & leases............................................................ 2,772,755 2,811,084 2,632,403 5.3

 Less: Reserve for losses..................................................... 53,520 53,650 52,954 1.1

 Net loans & leases................................................................ 2,719,235 2,757,434 2,579,449 5.4

 Securities............................................................................... 813,084 800,846 811,681 0.2

 Other real estate owned........................................................ 4,663 4,784 5,830 -20.0

 Goodwill and other intangibles.............................................. 55,026 44,690 31,667 73.8

 All other assets...................................................................... 1,049,724 970,597 879,792 19.3 

Total liabilities and capital....................................................... 4,641,730 4,578,351 4,308,419 7.7

 Noninterest-bearing deposits................................................ 633,629 664,263 570,637 11.0

 Interest-bearing deposits....................................................... 2,560,784 2,532,891 2,455,121 4.3

 Other borrowed funds............................................................ 753,757 716,002 657,572 14.6

 Subordinated debt................................................................. 52,330 51,167 45,427 15.2

 All other liabilities................................................................... 251,099 238,756 226,238 11.0

 Equity capital......................................................................... 390,131 375,271 353,424 10.4 

Loans and leases 30-89 days past due.................................. 38,114 38,501 34,304 11.1 

Noncurrent loans and leases.................................................. 29,109 29,140 31,036 -6.2 

Restructured loans and leases................................................ 3,523 3,649 3,659 -3.7 

Direct and indirect investments in real estate......................... 652 658 576 13.1 

1-4 Family residential mortgages............................................ 665,479 655,428 630,083 5.6 

Mortgage-backed securities.................................................... 341,963 336,043 335,189 2.0 

Earning assets......................................................................... 4,017,507 3,949,148 3,758,963 6.9 

Long-term assets (5+ years)................................................... 691,090 652,757 616,472 12.1 

Volatile liabilities...................................................................... 1,460,965 1,405,969 1,299,920 12.4 

Foreign office deposits............................................................ 475,852 473,544 454,432 4.7 

Unused loan commitments...................................................... 2,694,069 2,579,870 2,279,826 18.2 

Off-balance-sheet derivatives................................................. 22,354,628 20,297,173 18,409,371 21.4 

INCOME DATA 

Total interest income............................................. 

Total interest expense........................................... 

 Net interest income............................................. 

Provision for loan losses....................................... 

Total noninterest income....................................... 

Total noninterest expense..................................... 

Securities gains (losses)....................................... 

Applicable income taxes....................................... 

Extraordinary gains, net ....................................... 

 Net income.......................................................... 

Net charge-offs...................................................... 

Cash dividends...................................................... 

 Net operating income.......................................... 

Preliminary

 Full Year Full Year 1st Quarter 1st Quarter %Change 

1996 1995 %Change 1997 1996 96:1-97:1 

$312,783 $302,384 3.4 $81,074 $77,540 4.6 

150,007 148,173 1.2 38,993 37,639 3.6

162,776 154,211 5.6 42,081 39,901 5.5 

16,278 12,603 29.2 4,287 3,614 18.6 

93,578 82,426 13.5 24,726 22,154 11.6 

160,713 149,729 7.3 40,417 40,553 -0.3 

1,114 541 106.1 414 479 -13.6 

28,209 26,124 8.0 8,023 6,410 25.2 

88 26 244.3 (16) 66 N/M

52,357 48,747 7.4 14,477 12,023 20.4 

15,528 12,200 27.3 4,038 3,591 12.4 

38,766 31,053 24.8 8,491 7,641 11.1

51,516 48,399 6.4 14,223 11,640 22.2

 N/M - Not meaningful 
 

 

 

 

 

TABLE III-A. First Quarter 1997, FDIC-Insured Commercial Banks 

FIRST QUARTER Preliminary 

 (The way it is . . . ) 

Number of institutions reporting................ 

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

9,451 6,146 2,901 331 73 739 1,565 2,083 2,393 1,671 1,000 

Total assets (in billions)............................ $4,641.7 $277.1 $711.1 $995.4 $2,658.2 $1,755.3 $828.1 $727.3 $304.0 $337.2 $689.8 

Total deposits (in billions)......................... 3,194.4 239.8 589.7 694.6 1,670.4 1,081.1 586.0 524.4 226.0 273.4 503.5 

Net income (in millions)............................. 14,477 834 2,336 3,227 8,080 5,184 2,678 2,302 1,002 1,032 2,279 

% of unprofitable institutions..................... 4.0 5.3 1.3 3.3 NA 3.8 4.1 3.7 3.1 3.1 7.9 

% of institutions with earnings gains......... 

Performance Ratios (annualized, %) 

61.9 59.1 66.3 71.3 76.7 68.7 65.2 62.0 58.8 59.9 62.2 

Yield on earning assets............................. 8.13 8.24 8.29 8.40 7.96 7.97 8.02 8.06 8.30 7.85 8.81 

Cost of funding earning assets................. 3.91 3.62 3.61 3.80 4.08 4.24 3.80 3.83 3.73 3.39 3.66 

Net interest margin.................................... 4.22 4.61 4.68 4.59 3.89 3.72 4.23 4.23 4.58 4.46 5.15 

Noninterest income to earning assets...... 2.48 1.28 1.64 2.29 2.94 3.15 1.98 1.73 2.38 2.01 2.56 

Noninterest expense to earning assets.... 4.05 3.81 3.84 3.90 4.21 4.25 3.71 3.47 4.14 4.15 4.53 

Net operating income to assets................ 1.23 1.21 1.32 1.29 1.19 1.15 1.30 1.26 1.31 1.21 1.31 

Return on assets....................................... 1.26 1.21 1.33 1.29 1.23 1.19 1.31 1.27 1.33 1.23 1.32 

Return on equity........................................ 15.11 11.41 13.83 14.51 16.37 16.03 15.67 15.00 14.21 13.53 13.96 

Net charge-offs to loans and leases......... 0.58 0.17 0.35 0.96 0.52 0.66 0.42 0.42 0.71 0.31 0.80 

Loan loss provision to net charge-offs...... 

Condition Ratios (%) 

Loss allowance to:

106.17 185.84 131.43 105.51 99.28 103.10 98.60 121.49 108.97 127.84 103.46 

 Loans and leases.................................... 1.93 1.51 1.57 2.00 2.05 2.27 1.55 1.65 1.87 1.53 2.18

 Noncurrent loans and leases.................. 

Noncurrent assets plus

183.86 134.21 159.37 178.98 198.45 166.42 190.33 207.71 190.68 163.04 209.10 

 other real estate owned to assets........... 0.73 0.80 0.74 0.83 0.69 0.82 0.63 0.58 0.67 0.61 0.87 

Equity capital ratio..................................... 8.40 10.61 9.66 9.04 7.60 7.48 8.23 8.54 10.00 9.47 9.62 

Core capital (leverage) ratio...................... 7.78 10.57 9.32 8.21 6.90 7.19 7.82 8.25 8.96 8.34 7.93 

Net loans and leases to deposits.............. 

Growth Rates (year-to-year, %) 

85.12 65.16 72.50 92.71 89.30 82.91 90.69 89.44 80.22 66.70 91.11 

Assets....................................................... 7.74 - - - - 8.34 10.34 5.49 6.86 2.96 8.42 

Equity capital............................................. 10.39 - - - - 5.85 8.29 5.99 20.59 13.36 21.59 

Net interest income................................... 5.46 - - - - 2.65 8.23 6.88 7.29 2.68 7.16 

Net income................................................ 

Noncurrent assets plus

20.41 - - - - 42.70 22.11 13.74 2.99 -1.08 5.65 

 other real estate owned.......................... -8.52 - - - - -12.95 4.61 -8.89 1.70 -2.11 -12.14 

Net charge-offs......................................... 12.44 - - - - 0.86 14.75 17.11 16.63 28.49 28.41 

Loan loss provision................................... 

PRIOR FIRST QUARTERS

 (The way it was . . . ) 

18.64 - - - - 3.41 9.96 26.11 7.45 46.36 58.81 

Number of institutions.......................1996 9,838 6,582 2,835 349 72 785 1,640 2,158 2,471 1,743 1,041 

.........................................1994 10,840 7,674 2,787 325 54 870 1,807 2,383 2,686 1,920 1,174 

.........................................1992 11,805 8,659 2,777 318 51 967 1,914 2,612 2,859 2,088 1,365 

Total assets (in billions)....................1996 $4,308.4 $295.7 $692.1 $1,081.2 $2,239.4 $1,620.2 $750.5 $689.4 $284.5 $327.5 $636.2 

.........................................1994 3,843.2 330.6 682.2 1,062.5 1,767.9 1,497.3 608.3 625.9 250.6 296.8 564.4 

.........................................1992 3,435.8 350.5 676.6 1,031.0 1,377.8 1,287.5 528.4 559.7 235.3 272.8 552.1 

Return on assets (%).......................1996 1.12 1.21 1.30 1.28 0.97 0.90 1.18 1.17 1.37 1.28 1.35 

.........................................1994 1.17 1.14 1.19 1.43 1.01 1.12 1.20 1.16 1.42 1.23 1.16 

.........................................1992 

Net charge-offs to loans & leases (%) 

0.87 1.08 1.02 1.01 0.65 0.76 0.96 1.06 1.28 1.09 0.60 

........................................1996 0.55 0.17 0.34 0.86 0.49 0.68 0.42 0.39 0.64 0.24 0.68 

.........................................1994 0.48 0.13 0.27 0.68 0.50 0.74 0.24 0.28 0.41 0.07 0.58 

.........................................1992 

Noncurrent assets plus

1.24 0.42 0.61 1.50 1.52 1.77 0.84 0.75 0.75 0.77 1.28 

 OREO to assets (%).....................1996 0.86 0.85 0.82 0.88 0.87 1.02 0.67 0.67 0.70 0.64 1.07 

.........................................1994 1.46 1.02 1.24 1.36 1.69 1.91 0.98 0.87 0.97 0.84 1.96 

.........................................1992 3.03 1.67 2.09 2.78 4.02 4.15 2.16 1.68 1.56 2.28 3.59 

Equity capital ratio (%)......................1996 8.20 10.42 9.41 8.85 7.22 7.65 8.38 8.50 8.86 8.60 8.57 

.........................................1994 7.83 9.85 8.87 8.27 6.78 7.12 7.99 8.07 8.72 8.31 8.60 

.........................................1992 6.96 9.23 7.94 7.24 5.69 6.28 7.26 7.59 8.21 7.04 7.04 
 

 

 

 

TABLE IV-A. Full Year 1996, FDIC-Insured Commercial Banks 

Number of institutions reporting................ 

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

9,528 6,204 2,926 325 73 743 1,577 2,110 2,401 1,683 1,014 

Total assets (in billions)............................ $4,578.4 $280.1 $713.4 $1,002.4 $2,582.4 $1,730.7 $805.4 $716.9 $297.2 $334.4 $693.8 

Total deposits (in billions)......................... 3,197.2 242.7 593.5 701.9 1,659.1 1,081.3 583.7 525.5 227.7 275.0 504.0 

Net income (in millions)............................. 52,357 3,131 8,731 12,690 27,805 18,294 9,477 8,497 4,096 3,961 8,033 

% of unprofitable institutions..................... 4.2 5.4 2.0 2.5 NA 5.0 4.9 3.8 2.7 3.1 8.9 

% of institutions with earnings gains......... 

Performance Ratios (%) 

70.9 67.7 77.2 74.8 69.9 74.7 74.8 72.8 72.6 62.3 68.1 

Yield on earning assets............................. 8.20 8.30 8.34 8.53 8.01 8.04 8.21 8.11 8.39 7.84 8.77 

Cost of funding earning assets................. 3.93 3.66 3.63 3.83 4.10 4.27 3.86 3.91 3.84 3.42 3.51 

Net interest margin.................................... 4.27 4.64 4.70 4.70 3.91 3.77 4.36 4.21 4.54 4.42 5.26 

Noninterest income to earning assets...... 2.45 1.17 1.58 2.28 2.94 3.09 1.89 1.68 2.57 1.91 2.64 

Noninterest expense to earning assets.... 4.21 3.75 3.90 4.02 4.44 4.45 3.82 3.52 4.19 4.05 4.97 

Net operating income to assets................ 1.17 1.16 1.27 1.30 1.09 1.07 1.20 1.19 1.41 1.22 1.22 

Return on assets....................................... 1.19 1.16 1.28 1.31 1.12 1.10 1.22 1.21 1.43 1.22 1.24 

Return on equity........................................ 14.45 10.95 13.54 14.88 15.12 14.72 14.50 14.29 16.18 13.96 13.52 

Net charge-offs to loans and leases......... 0.58 0.26 0.42 0.89 0.52 0.63 0.45 0.44 0.70 0.35 0.79 

Loan loss provision to net charge-offs...... 

Condition Ratios (%) 

Loss allowance to:

104.83 138.96 118.45 109.42 96.59 101.68 118.47 113.73 114.56 108.61 92.01 

 Loans and leases.................................... 1.91 1.50 1.56 1.99 2.01 2.21 1.59 1.65 1.77 1.54 2.10

 Noncurrent loans and leases.................. 

Noncurrent assets plus

184.11 141.43 159.50 175.13 199.84 171.33 183.99 209.48 192.87 162.10 202.21 

 other real estate owned to assets........... 0.75 0.77 0.74 0.85 0.71 0.84 0.68 0.57 0.65 0.61 0.88 

Equity capital ratio..................................... 8.20 10.55 9.44 8.77 7.38 7.36 8.48 8.43 8.74 8.74 9.23 

Core capital (leverage) ratio...................... 7.64 10.52 9.16 8.14 6.71 7.02 7.94 8.06 8.56 8.18 7.77 

Net loans and leases to deposits.............. 

Growth Rates (year-to-year, %) 

86.25 64.98 72.30 92.94 91.52 87.44 90.11 88.12 79.70 64.52 92.06 

Assets....................................................... 6.16 - - - - 6.46 9.18 3.11 3.38 2.45 8.36 

Equity capital............................................. 7.35 - - - - 2.93 12.57 4.72 3.81 5.04 17.13 

Net interest income................................... 5.55 - - - - 1.88 13.03 6.40 3.95 6.41 4.67 

Net income................................................ 

Noncurrent assets plus

7.41 - - - - 12.90 13.64 9.10 2.50 5.92 -7.46 

 other real estate owned.......................... -6.77 - - - - -12.84 15.56 -6.88 4.81 1.26 -12.61 

Net charge-offs......................................... 27.28 - - - - 5.98 57.64 51.74 38.12 50.61 35.80 

Loan loss provision................................... 

PRIOR FULL YEARS

 (The way it was . . . ) 

29.16 - - - - 4.96 88.52 32.60 43.08 38.09 41.56 

Number of institutions.......................1995 9,940 6,658 2,861 346 75 794 1,659 2,178 2,487 1,773 1,049 

.........................................1993 10,958 7,789 2,787 327 55 878 1,818 2,412 2,706 1,937 1,207 

.........................................1991 11,921 8,798 2,755 319 49 994 1,924 2,634 2,881 2,103 1,385 

Total assets (in billions)....................1995 $4,312.7 $297.9 $696.7 $1,052.8 $2,265.2 $1,625.6 $737.7 $695.2 $287.5 $326.4 $640.3 

.........................................1993 3,706.2 335.1 676.9 1,063.7 1,630.5 1,399.6 594.8 612.4 251.3 293.8 554.3 

.........................................1991 3,430.7 353.8 674.5 1,050.2 1,352.2 1,285.5 514.6 568.4 232.9 270.3 559.0 

Return on assets (%)........................1995 1.17 1.18 1.24 1.27 1.10 1.02 1.19 1.15 1.50 1.20 1.41 

.........................................1993 1.20 1.14 1.17 1.31 1.16 1.12 1.20 1.28 1.44 1.39 1.11 

.........................................1991 

Net charge-offs to loans & leases (%) 

0.53 0.76 0.74 0.55 0.35 0.27 0.62 0.86 1.05 0.65 0.44 

.........................................1995 0.49 0.24 0.37 0.69 0.46 0.64 0.32 0.31 0.54 0.24 0.62 

.........................................1993 0.85 0.35 0.51 0.92 1.02 1.27 0.43 0.51 0.61 0.28 0.96 

.........................................1991 

Noncurrent assets plus

1.59 0.69 0.97 1.68 2.01 2.33 1.23 0.88 1.06 1.26 1.32 

 OREO to assets (%).....................1995 0.85 0.78 0.80 0.82 0.89 1.03 0.64 0.63 0.64 0.62 1.09 

.........................................1993 1.61 1.05 1.29 1.43 1.97 2.16 1.08 0.93 0.99 0.92 2.19 

.........................................1991 3.02 1.63 2.07 2.81 4.01 4.20 2.21 1.64 1.54 2.39 3.38 

Equity capital ratio (%)......................1995 8.11 10.42 9.39 8.57 7.19 7.61 8.23 8.30 8.70 8.52 8.53 

.........................................1993 8.00 9.76 8.74 8.13 7.25 7.48 8.02 8.12 8.67 8.26 8.73 

.........................................1991 6.75 9.09 7.78 6.94 5.48 6.06 7.24 7.31 8.12 6.87 6.72 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

March 31, 1997 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.38 1.69 1.33 1.31 1.39 1.54 1.17 1.37 1.42 1.68 1.32

 Construction and development............................. 1.85 1.49 1.54 2.17 1.90 2.09 1.32 2.06 3.15 1.81 1.84

 Commercial real estate......................................... 1.21 1.29 1.04 1.15 1.36 1.81 0.88 1.15 1.12 1.21 0.99

 Multifamily residential real estate.......................... 0.97 1.06 0.88 0.96 1.00 0.71 0.56 1.24 0.76 1.37 1.49

 Home equity loans................................................ 0.94 1.16 0.94 0.95 0.92 1.29 0.75 0.87 0.77 0.90 0.80

 Other 1-4 Family residential.................................. 1.51 2.01 1.57 1.36 1.47 1.49 1.37 1.53 1.38 2.04 1.60 

Commercial and industrial loans*........................... 1.04 2.19 1.73 1.29 0.65 0.67 0.89 1.36 2.41 1.52 0.96 

Loans to individuals................................................. 2.35 2.40 2.07 2.49 2.32 2.65 1.93 2.29 2.48 2.05 2.28

 Credit card loans................................................. 2.65 2.55 2.55 2.77 2.57 2.62 2.47 2.72 3.07 3.46 2.54

 Other loans to individuals...................................... 2.15 2.39 1.96 2.23 2.14 2.68 1.73 2.14 1.97 1.90 1.97 

All other loans and leases (including farm)............. 0.52 NA NA 1.05 0.44 0.40 0.42 1.01 0.67 0.49 0.45 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Noncurrent** 

1.04 1.15 1.09 0.96 1.06 0.34 0.56 1.54 0.94 6.24 0.74 

All real estate loans................................................. 1.18 0.95 0.90 1.10 1.41 1.84 0.90 0.78 0.77 1.01 1.22

 Construction and development............................. 1.45 0.96 0.89 1.20 2.19 4.66 0.81 0.84 0.91 0.64 1.41

 Commercial real estate......................................... 1.56 1.09 1.08 1.28 2.23 3.02 0.94 1.02 1.01 1.14 1.49

 Multifamily residential real estate.......................... 1.26 1.15 1.06 0.99 1.57 1.22 0.71 0.77 0.49 0.38 2.89

 Home equity loans................................................ 0.48 0.62 0.45 0.45 0.51 0.76 0.36 0.34 0.22 0.41 0.48

 Other 1-4 Family residential.................................. 0.98 0.78 0.77 1.08 1.06 1.26 0.95 0.69 0.57 0.97 1.00 

Commercial and industrial loans*........................... 0.97 1.60 1.34 0.96 0.77 0.97 0.72 0.89 1.43 1.24 1.03 

Loans to individuals................................................. 1.36 0.85 0.79 1.42 1.52 2.02 0.92 0.97 1.27 0.64 1.20

 Credit card loans................................................. 2.00 1.53 1.72 2.06 1.99 2.13 1.80 1.98 2.09 1.95 1.83

 Other loans to individuals...................................... 0.94 0.81 0.57 0.82 1.17 1.90 0.59 0.63 0.54 0.50 0.42 

All other loans and leases (including farm)............. 0.27 NA NA 0.49 0.24 0.27 0.22 0.25 0.35 0.29 0.30 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Charged-off (net, annual) 

0.67 1.02 0.38 0.30 0.76 1.50 0.30 0.38 0.47 0.65 0.43 

All real estate loans................................................. 0.04 0.03 0.04 0.04 0.03 0.07 0.03 0.03 -0.03 -0.03 0.06

 Construction and development............................. -0.03 0.04 0.01 0.01 -0.11 0.01 0.02 0.07 0.07 -0.20 -0.17

 Commercial real estate......................................... -0.02 0.03 0.06 0.01 -0.13 -0.04 -0.01 0.02 -0.16 -0.05 -0.01

 Multifamily residential real estate.......................... 0.10 0.23 0.08 0.07 0.12 0.13 0.12 0.10 -0.09 -0.04 0.15

 Home equity loans................................................ 0.17 0.08 0.08 0.15 0.20 0.16 0.06 0.12 0.08 0.50 0.31

 Other 1-4 Family residential.................................. 0.06 0.04 0.03 0.05 0.08 0.10 0.04 0.03 0.03 0.02 0.09 

Commercial and industrial loans*........................... 0.18 0.22 0.24 0.22 0.13 0.17 0.11 0.12 0.30 0.18 0.28 

Loans to individuals................................................. 2.59 0.58 1.54 3.17 2.67 3.03 2.05 1.89 2.77 1.27 3.38

 Credit card loans................................................. 4.93 3.13 4.76 5.37 4.62 5.00 4.65 4.79 5.21 4.15 4.96

 Other loans to individuals...................................... 1.00 0.43 0.75 0.98 1.19 1.04 0.95 0.92 0.59 0.96 1.35 

All other loans and leases (including farm)............. 0.03 NA NA 0.21 0.00 -0.10 0.16 0.15 0.09 0.06 0.20 

Memo: Commercial RE loans not secured by RE.. 

Loans Outstanding (in billions) 

-0.07 0.80 0.02 0.03 -0.10 -0.17 0.00 -0.06 0.04 -0.03 -0.05 

All real estate loans................................................. $1,155.9 $89.3 $262.7 $287.6 $516.2 $309.9 $288.9 $203.6 $77.6 $76.8 $199.0

 Construction and development............................. 78.4 6.2 21.7 22.7 27.8 10.5 24.2 14.0 5.8 8.2 15.6

 Commercial real estate......................................... 319.0 23.8 89.5 88.7 117.0 72.6 73.8 61.5 22.0 26.1 63.1

 Multifamily residential real estate.......................... 38.9 2.0 8.7 11.6 16.6 11.8 7.8 6.5 2.6 2.6 7.6

 Home equity loans................................................ 86.7 2.1 13.0 23.5 48.1 23.6 19.9 18.8 3.3 1.0 20.0

 Other 1-4 Family residential.................................. 578.8 44.6 120.6 137.6 276.0 164.7 158.9 96.5 35.7 36.0 87.0 

Commercial and industrial loans............................. 732.1 26.5 76.8 143.3 485.5 274.5 112.4 136.7 41.0 53.7 113.9 

Loans to individuals................................................. 543.7 24.5 73.9 178.2 267.1 186.0 95.9 89.1 42.5 38.4 91.9

 Credit card loans................................................. 215.9 1.3 13.9 86.5 114.1 93.1 26.2 22.2 19.9 3.6 50.9

 Other loans to individuals...................................... 327.9 23.2 60.0 91.7 153.0 92.9 69.7 66.9 22.6 34.8 41.1 

All other loans and leases (including farm)............. 346.1 19.0 22.3 49.0 255.9 149.0 43.4 48.4 23.7 16.9 64.7 

Memo: Commercial RE loans not secured by RE.. 

Memo: Other Real Estate Owned (in millions) 

25.6 0.2 1.1 4.2 20.1 6.0 3.9 2.9 0.8 1.5 10.5 

All other real estate owned..................................... $4,662.7 $431.9 $976.9 $920.9 $2,333.0 $1,770.3 $869.8 $395.1 $228.2 $308.2 $1,091.0

 Construction and development............................. 625.9 56.3 175.9 143.5 250.2 144.9 234.7 53.3 50.1 27.4 115.5

 Commercial real estate......................................... 2,165.4 201.7 455.6 460.0 1,048.1 739.3 364.7 222.8 98.5 166.5 573.6

 Multifamily residential real estate.......................... 192.2 16.0 45.9 48.3 82.0 100.9 23.6 7.9 5.3 4.9 49.5

 1-4 Family residential............................................ 1,179.1 120.9 264.3 242.9 551.0 383.6 236.5 104.5 50.3 81.7 322.5

 Farmland............................................................... 120.7 37.0 35.2 25.6 22.9 23.5 9.7 6.6 24.0 27.9 29.1

 Other real estate owned in foreign offices............ 379.4 0.0 0.1 0.5 378.8 378.2 0.5 0.0 0.0 0.0 0.7 

*Includes "All other loans" for institutions under $1 billion in asset size. N/A - Not available 

**Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status. 
SAVINGS INSTITUTION PERFORMANCE — FIRST QUARTER, 1997 

• Savings Institutions Earned $2.4 Billion In The First Quarter 

• Higher Asset Yields Drive Up Net Interest Margins At Large Institutions 

• Charter Conversions And Acquisitions Transfer Over $18 Billion In Assets 

To Commercial Banks 

Savings institutions reported earnings of $2.4 billion in the 

first quarter of 1997, for an average annualized return on 

assets (ROA) of 0.96 percent. This was the third-best 

quarterly ROA ever reported. The first two quarters of 

1996 were the only other quarters in which savings institutions experienced higher profitability. The firstquarter’s ROA was up from 0.85 percent in the fourth 

quarter of 1996, but down from the first quarter of 1996 

when it was 1.01 percent. First-quarter earnings were 

$136 million lower than in the first quarter of 1996. 

Compared to a year ago, net interest income was $329 

million higher, but all other components of net income 

showed deterioration. Noninterest income was $129 million lower than a year ago when gains on sales of 

branches boosted income. Noninterest expense rose 

just one percent ($53 million) from a year ago. A reduction in deposit insurance premiums saved the thrift industry approximately $200 million in pre-tax noninterest 

expense. Provisions for loan losses were up by $82 million and income tax expenses rose by $90 million. Gains 

on the sales of securities were $106 million lower in this 

year’s first quarter compared to the first quarter of last 

year. Almost 96 percent of all savings institutions were 

profitable in the first quarter and almost 73 percent improved their earnings relative to the same period last 

year. 

Quarterly Net Income, 1993 - 1997 

$ Billions 

4 

3 

2 

1 

0 

-1 

2.4 

1.7 

1.2 

1.6 

1.3 

1.8 

1.9 

1.6 1.7 

1.9 

2.2 

1.8 

2.5 2.6 

0.1 

2.2 

2.4 

Net Operating Income 

Securities and Other Gains, Net 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 

1993 1994 1995 1996 1997 

The Northeast Region and the Southwest Region were 

the only regions to show a decline in ROA from a year 

ago. Net income for thrifts in the Northeast Region declined by just six percent as higher provisions for loan 

losses took a toll on earnings. Earnings for thrifts in the 

FDIC-Insured Savings Institutions 8 

Southwest Region were two-thirds less than a year ago. 

This decline is largely attributable to the relocation of a 

large institution that moved its reporting headquarters 

from Dallas, Texas to San Francisco, California following 

a merger.1 This relocation resulted in a reduction in noninterest income in the Southwest Region — from 2.65 

percent of earning assets a year ago to 1.05 percent — 

and an increase in noninterest income in the West Region 

— from 0.60 percent of earning assets to 0.73 percent. 

The aggregate ROA for thrifts in the West Region rose to 

a record 0.87 percent from 0.69 percent a year ago. 

Quarterly Net Interest Margins 

1993 - 1997 Net Interest Margin (%) 

4 

3.5 

3 

Assets < $100 Million 

Assets > $100 Million 

3.58% 

3.32% 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 

1993 1994 1995 1996 1997 

Net interest margins at larger institutions rose on the 

strength of higher asset yields. Margins rose to 3.32 percent from 3.23 percent in the fourth quarter. The yield on 

earning assets rose eight basis points to 7.84 percent as 

long-term rates rose faster than short-term rates. The 

cost of funding earning assets was unchanged, for the 

second consecutive quarter, at 4.52 percent. Net interest 

margins improved in all regions. A steepening yield curve 

has led to improvements in net interest margins for large 

thrifts that keep adjustable-rate mortgages as a large 

share of their mortgage loan portfolios. Large thrifts, with 

over $5 billion in assets, reported an 11 basis-point improvement in margins as asset yields rose 17 basis 

points. Thrifts with $1 to $5 billion in assets showed a 13 

basis-point improvement in margins with asset yields 

1 First Nationwide Bank, FSB of Dallas, Texas with $16.5 billion in 

assets purchased California Federal Bank, a FSB in Los Angeles, 

California with $14.2 billion in assets during the first quarter and the 

institution kept the California Federal Bank charter. 

FDIC Quarterly Banking Profile 

First Quarter 1997 
rising 12 basis points. Thrifts with less than $1 billion 

in assets showed no improvement in margins. in assets showed no improvement in margins. 

The coverage ratio — loan-loss reserves to noncurrent loans — remained at 78 cents in reserves for 

each dollar of noncurrent loans. Noncurrent loans 

held steady at $8.9 billion. Reserves declined $527 

million in the fist quarter, due primarily to reporting 

changes for Thrift Financial Report (TFR) filers that 

removed specific reserves from total reserves. General reserves for each period were about the same. 

Provisions exceeded net charge-offs for the sixth 

consecutive quarter; thrifts set aside $589 million in 

provisions during the quarter, while net charge-offs 

totaled $452 million. 

Coverage Ratio* and Reserve Levels, 1993 - 1997 

$ Billions Coverage Ratio (%) 

Loan Reserves ($) 

Noncurrent Loans 

($) 

Coverage Ratio (%) 

30 100 

25 

80 

20 

60 

15 

40 

10 

5 20 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 

1993 1994 1995 1996 1997 

*Loan-Loss reserves to Noncurrent Loans and Le ses. 

The noncurrent loan rate remained unchanged from 

the end of 1996 at 1.29 percent. Noncurrent rates for 

individual loan categories changed quite dramatically 

during the first quarter, but these changes offset 

each other. The largest increase was in the noncurrent rate for real estate construction and land loans. 

A reporting change for TFR filers that removed 

loans-in-process from each loan category reduced 

the reported amount of loans outstanding and caused 

this ratio to increase to 1.42 percent from 1.05 percent. For TFR filers in 1996, real estate construction 

and land loans were shown without subtracting 

loans-in-process. The noncurrent rate for loans secured by 1-4 family properties increased slightly from 

1.17 percent to 1.21 percent of loans outstanding. 

The increases in these rates were offset by improvements in the noncurrent rate on multifamily real estate loans, commercial and industrial loans (C&I), 

and loans to individuals. The noncurrent rate for 

loans secured by multifamily residential property improved to 1.49 percent from 1.63 percent at the end of 

1996. The noncurrent rate for C&I loans fell to 1.58 

percent and the noncurrent rate for loans to individuals fell to 1.03 percent, from 1.65 percent and 1.10 

percent, respectively. 

FDIC Quarterly Banking Profile 

Quarterly Noncurrent Loan Rates* 

1993 - 1997 

% of Loans 

6.0 

4.0 

2.0 

0.0 

1993 1994 1995 1996 1997 

*Noncurren loa rate repr sent the percentage of loans that are past due 90 days r more or in nonaccrual status. 

Real Estate 

Loans to 

Individuals 

C&I 

The first quarter of any year usually has the lowest net 

charge-off rate, and in the first quarter of 1997 the net 

charge-off rate hit its lowest level since reporting began in 1990. The annualized net charge-off rate on 

total loans was 0.27 percent in the first quarter, down 

from 0.30 percent in the same period of 1996. Despite a sudden surge in net charge-offs for loans to individuals, the overall rate declined. This quarter, for 

the first time, net charge-offs on loans to individuals 

can be separated into credit-card loans and other 

loans to individuals. Credit-card loans accounted for 

about one-fourth of all loans to individuals and this 

category showed an annualized net charge-off rate of 

5.42 percent. The top five thrifts ranked by credit-card 

loans accounted for over 70 percent of the industry’s 

outstanding balances and more than three-fourths of 

all credit-card net charge-offs in the first quarter. 

Quarterly Net Charge-Off Rates (Annualized) 

1993 - 1997 

% of Loans 

3.0 

2.0 

1.0 

0.0 

Real Estate 

Loans to Individuals 

C&I 

Total 

1993 1994 1995 1996 1997 

Thrift industry assets declined by $4.8 billion during 

the first quarter. A reporting change affected the way 

thrifts consolidate their financial reports. Previously, 

First Quarter 1997 9 FDIC-Insured Savings Institutions 
thrifts were prohibited from consolidating subsidiary depository institutions. Now the parent thrift must file a report on a consolidated basis, and several subsidiary 

institutions also filed reports. This led to a doublecounting of thrift industry assets of almost $3 billion. Without this reporting change, thrift industry assets would 

have declined by nearly $8 billion. 

Total loans and leases increased by $2.1 billion in the first 

quarter. The netting of loans-in-process against construction and land loans contributed to a $7-billion decline 

in these loans in the first quarter.2 Securities declined by 

$4.3 billion during the first quarter and declined by $21.1 

billion from a year ago. As has been the case recently, 

thrifts shed less in deposits, which decreased by $1.9 billion during the quarter, than other borrowings, which decreased by $3.6 billion. Equity capital declined by $413 

2 The separate reporting of contra accounts for loans-in-process and 

unearned income by TFR reporters was eliminated. Loan balances 

for TFR reporters are now reported net of these contra accounts. Call 

Report filers continue to report unearned income as a contra account. 

million during the first quarter, primarily due to a decline in 

unrealized gains on available-for-sale securities. Equity 

capital ended the quarter at 8.34 percent of assets, down 

slightly from 8.35 percent at the end of 1996. Dividends 

were 10 percent higher this quarter than in the first quarter 

of 1996. Earnings retained by the industry were $250 million lower than in the first quarter of 1996. Still, most thrifts 

qualified as either adequately capitalized or wellcapitalized. 

The number of savings institutions declined by 38 during 

the first quarter to 1,886 institutions. The commercial 

banking industry absorbed 26 savings institutions with 

$18.1 billion in assets during the quarter. Commercial 

banks acquired 15 thrifts with $11.2 billion in assets; 11 

thrifts with $6.9 billion in assets converted to commercial 

bank charters. Consolidation within the thrift industry absorbed 15 institutions with $21.1 billion in assets. There 

were eight mutual-to-stock conversions during the first 

quarter involving $8.8 billion in assets. The number of 

“problem” institutions remained the same, at 35 institutions, while the assets of “problem” institutions fell from $7 

billion to $5.3 billion. 

Noncurrent Loan Rates By State* 

March 31, 1997 

Greater than 1.5%

Southwest 

West 

Alabama

Alaska 0.8

0.5

Arizona

0.6

Arkansas

0.7

California

1.4

Colorado

0.2

FL

0.9

Georgia

1.0

Hawaii

2.0

Idaho

0.4

Illinois

1.2

IN

0.8

Iowa

0.9

Kansas

0.4 Kentucky

0.7

LA

0.5

Maine

1.1

Michigan

0.7

Minnesota

0.5

MS

1.6

Missouri

1.0

Montana

0.2

Nebraska

0.7

Nevada

1.3

New Mexico

0.7

NY

1.9

N. Carolina

0.7

North

Dakota

1.0

Ohio

0.7

Oklahoma

1.1

Oregon

0.5

Pennsylvania

0.9

S. Carolina

0.9

South

Dakota

0.5

Tennessee

0.5

Texas

1.5

Utah

1.4

VT: 1.5

Virginia

1.2

Washington

0.5

WV

1.3

Wisconsin

0.4

Wyoming

0.6

Puerto

Rico

1.9

Northeast 

Southeast 

Central 

Midwest 

CT: 1.6

DE: 1.5

DC: 2.5

MD: 1.8

MA: 0.9

NH: 1.0

NJ: 4.5

RI: 1.4

Between .75% and 1.5% * Noncurrent loan rates represent the percentage of loans that

Less than .75% are past due 90 days or more or in nonaccrual status.

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 First Quarter 1997 
TABLE I-B. Selected Indicators, FDIC-Insured Savings Institutions*

 1997** 1996** 1996 1995 1994 1993 1992 

Return on assets (%).............................................. 0.96 1.01 0.70 0.77 0.66 0.70 0.65 

Return on equity (%)............................................... 11.46 11.97 8.35 9.40 8.28 9.24 9.48 

Core capital (leverage) ratio (%)............................. 7.83 7.88 7.77 7.80 7.65 7.45 6.77 

Noncurrent assets plus

 other real estate owned to assets (%).................. 1.10 1.23 1.10 1.20 1.38 2.10 3.07 

Net charge-offs to loans (%)................................... 0.27 0.30 0.32 0.34 0.51 0.65 0.59 

Asset growth rate (%).............................................. 0.69 0.26 0.24 1.70 0.77 -2.85 -7.44 

Net interest margin (%)........................................... 3.33 3.19 3.22 3.09 3.34 3.48 3.40 

Net operating income growth (%)........................... -2.78 31.29 -14.05 13.81 22.24 21.21 574.61 

Number of institutions............................................. 1,886 2,005 1,924 2,030 2,152 2,262 2,390 

Percentage of unprofitable institutions.................... 4.14 5.04 11.64 5.86 6.97 5.88 7.57 

Number of problem institutions............................... 35 42 35 49 71 146 276 

Assets of problem institutions (in billions)............... $5 $13 $7 $14 $39 $92 $183 

Number of failed/assisted institutions..................... 0 0 1 2 4 8 81 

**Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Savings Institutions* 

(dollar figures in millions) 

Number of institutions reporting.............................................. 

Total employees (full-time equivalent).................................... 

CONDITION DATA 

Total assets............................................................................. 

 Loans secured by real estate............................................ 

 1-4 Family residential...................................................... 

 Multifamily residential property........................................ 

 Commercial real estate................................................... 

 Construction, development and land............................... 

 Commercial & industrial loans........................................... 

 Loans to individuals........................................................... 

 Other loans & leases......................................................... 

 Less: Unearned income & contra accounts***.................. 

 Total loans & leases............................................................ 

 Less: Reserve for losses..................................................... 

 Net loans & leases................................................................ 

 Securities............................................................................... 

 Other real estate owned........................................................ 

 Goodwill and other intangibles.............................................. 

 All other assets...................................................................... 

Total liabilities and capital....................................................... 

 Deposits................................................................................ 

 Other borrowed funds............................................................ 

 Subordinated debt................................................................. 

 All other liabilities................................................................... 

 Equity capital......................................................................... 

Loans and leases 30-89 days past due.................................. 

Noncurrent loans and leases.................................................. 

Restructured loans and leases................................................ 

Direct and indirect investments in real estate......................... 

Mortgage-backed securities.................................................... 

Earning assets......................................................................... 

FHLB Advances (TFR filers only)............................................ 

Unused loan commitments...................................................... 

Preliminary 

1st Quarter 

1997 

4th Quarter 1st Quarter 

1996 1996 

%Change 

96:1-97:1 

1,886 

250,752 

$1,023,390 

627,743 

501,386 

58,785 

49,228 

18,344 

14,834 

46,170 

2,475 

262 

690,960 

6,953 

684,007 

258,105 

2,333 

9,112 

69,833 

1,023,387 

726,124 

197,376 

2,364 

12,126 

85,397 

8,812 

8,888 

4,341 

595 

191,442 

961,311 

97,550 

105,038 

1,924 2,005 

252,759 249,214 

$1,028,192 $1,016,398 

637,312 609,935 

502,162 479,306 

59,530 58,440 

50,185 49,778 

25,435 22,411 

14,852 13,311 

44,941 41,013 

2,328 1,954 

10,575 9,500 

688,858 656,713 

7,480 7,198 

681,377 649,516 

262,391 279,233 

2,414 3,044 

8,085 7,534 

73,925 77,071 

1,028,192 1,016,398 

727,995 734,761 

200,927 181,819 

2,401 2,394 

11,059 11,806 

85,810 85,618 

9,225 8,898 

8,885 9,437 

4,626 5,566 

591 310 

193,079 207,912 

963,367 950,695 

103,095 85,917 

96,336 95,592 

-5.9 

0.6 

0.7

2.9

4.6

0.6

-1.1

-18.1

11.4

12.6

26.7

N/M

5.2

-3.4

5.3

-7.6

-23.3

20.9

-9.4 

0.7

-1.2

8.6

-1.2

2.7

-0.3 

-1.0 

-5.8 

-22.0 

91.9 

-7.9 

1.1 

13.5 

9.9 

INCOME DATA 

Total interest income............................................. 

Total interest expense........................................... 

 Net interest income............................................. 

Provision for loan losses....................................... 

Total noninterest income....................................... 

Total noninterest expense..................................... 

Securities gains (losses)....................................... 

Applicable income taxes....................................... 

Extraordinary gains, net ....................................... 

 Net income.......................................................... 

Net charge-offs...................................................... 

Cash dividends...................................................... 

 Net operating income.......................................... 

Full Year 

1996 

Full Year 

1995 

Preliminary 

1st Quarter 1st Quarter 

%Change 1997 1996 

%Change 

96:1-97:1 

$72,291 

42,180 

30,111 

2,496 

7,506 

25,695 

882 

3,089 

(247) 

6,972 

2,112 

5,811 

6,555 

$70,995 

42,529 

28,466 

2,117 

7,121 

21,835 

463 

4,159 

(321) 

7,619 

2,153 

4,084 

7,626 

1.8 $18,537 $18,313 

-0.8 10,674 10,779 

5.8 7,863 7,534 

17.9 589 507 

5.4 1,820 1,949 

17.7 5,588 5,535 

90.5 248 354 

-25.7 1,348 1,258 

N/M (0) 5 

-8.5 2,406 2,542 

-1.9 452 487 

42.3 1,261 1,148 

-14.1 2,230 2,293 

1.2 

-1.0

4.4 

16.1 

-6.6 

1.0 

-30.0 

7.2 

N/M

-5.4 

-7.2 

9.9

-2.8 

*Data between 1992 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. N/M - Not Meaningf 

***Prior to 1997, includes contra accounts such as loans in process and unamortized yield adjustments for TFR filers.

 Beginning March 31, 1997, includes only unearned income reported by Call Report filers. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-B. First Quarter 1997, FDIC-Insured Savings Institutions 

FIRST QUARTER Preliminary 

 (The way it is . . . ) 

Number of institutions reporting................ 

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west* West* 

1,886 824 904 124 34 713 277 492 143 124 137 

Total assets (in billions)............................ $1,023.4 $42.7 $267.7 $260.4 $452.5 $336.3 $64.6 $176.7 $50.7 $61.6 $333.5 

Total deposits (in billions)......................... 726.1 35.5 211.4 184.9 294.3 258.7 49.2 129.6 37.2 37.6 213.7 

Net income (in millions)............................. 2,405.6 82.0 623.9 712.3 987.4 811.8 143.8 443.5 137.8 164.1 704.6 

% of unprofitable institutions..................... 4.1 6.6 2.2 1.6 5.9 2.8 6.9 3.3 2.8 5.6 8.8 

% of institutions with earnings gains......... 

Performance Ratios (annualized, %) 

72.6 69.4 74.0 83.9 73.5 72.8 74.0 75.2 73.4 61.3 69.3 

Yield on earning assets............................. 7.84 7.81 7.79 8.03 7.77 7.67 8.19 7.90 7.96 8.11 7.85 

Cost of funding earning assets................. 4.52 4.23 4.27 4.44 4.74 4.10 4.44 4.67 4.68 4.84 4.79 

Net interest margin.................................... 3.33 3.58 3.53 3.59 3.03 3.57 3.75 3.23 3.28 3.27 3.06 

Noninterest income to earning assets...... 0.77 0.65 0.60 1.00 0.75 0.57 1.31 0.90 0.91 1.05 0.73 

Noninterest expense to earning assets.... 2.36 2.99 2.54 2.60 2.06 2.40 3.41 2.36 2.30 2.42 2.12 

Net operating income to assets................ 0.89 0.70 0.86 1.01 0.84 0.90 0.73 0.93 1.02 1.07 0.83 

Return on assets....................................... 0.96 0.77 0.94 1.11 0.89 0.97 0.90 1.01 1.09 1.07 0.87 

Return on equity........................................ 11.46 6.75 9.52 13.14 12.66 10.62 9.54 11.67 12.63 13.40 12.31 

Net charge-offs to loans and leases......... 0.27 0.07 0.11 0.48 0.27 0.28 0.46 0.23 0.04 0.43 0.25 

Loan loss provision to net charge-offs...... 

Condition Ratios (%) 

Loss allowance to:

130.13 136.89 201.88 99.67 142.65 124.01 98.81 122.13 515.33 110.11 147.74 

 Loans and leases.................................... 1.01 0.75 0.94 1.23 0.95 1.17 1.01 0.79 0.87 0.74 1.04

 Noncurrent loans and leases.................. 

Noncurrent assets plus

78.24 69.73 82.74 70.85 82.34 65.44 106.51 99.31 113.20 56.71 83.04 

 other real estate owned to assets........... 1.10 0.90 0.97 1.35 1.05 1.29 0.99 0.67 0.70 1.06 1.22 

Noncurrent RE loans to RE loans............. 1.30 1.03 1.11 1.79 1.19 1.83 0.84 0.75 0.74 1.45 1.29 

Equity capital ratio..................................... 8.34 11.44 9.88 8.46 7.08 9.17 9.46 8.71 8.63 8.12 7.10 

Core capital (leverage) ratio...................... 7.83 11.23 9.51 7.95 6.45 8.56 9.00 8.32 8.10 7.73 6.60 

Gross real estate assets to gross assets.. 79.77 72.12 74.62 76.67 85.32 74.42 72.44 80.05 78.02 75.71 87.45 

Gross 1-4 family mortgages to gr. assets. 48.65 52.31 47.65 40.47 53.61 42.59 47.09 53.20 51.84 36.47 54.41 

Net loans and leases to deposits.............. 

Growth Rates (year-to-year, %) 

94.20 82.00 84.24 89.44 105.81 77.73 90.73 95.51 94.08 100.25 113.10 

Assets....................................................... 0.69 - - - - -2.93 -7.37 4.26 -1.57 -21.91 11.03 

Equity capital............................................. -0.26 - - - - -0.89 -7.32 -0.96 -1.33 -18.13 8.50 

Net interest income................................... 4.36 - - - - 1.02 1.15 9.44 5.36 -12.33 10.77 

Net income................................................ 

Noncurrent assets plus

-5.37 - - - - -6.15 -5.73 14.18 18.03 -67.34 36.29 

 other real estate owned.......................... -10.14 - - - - -12.27 -31.14 18.88 10.49 -28.47 -7.56 

Net charge-offs......................................... -7.22 - - - - 0.21 38.13 125.16 -65.87 43.01 -39.47 

Loan loss provision................................... 

PRIOR FIRST QUARTERS**

 (The way it was . . . ) 

16.14 - - - - 51.82 5.03 61.31 15.57 16.91 -9.03 

Number of institutions.......................1996 2,005 896 951 124 34 747 299 516 151 135 157 

.......................................1994 2,239 1,030 1,037 144 28 823 356 565 165 145 185 

.......................................1992 2,528 1,168 1,153 175 32 895 449 617 187 161 219 

Total assets (in billions)....................1996 $1,016.4 $46.1 $279.1 $256.6 $434.6 $346.5 $69.7 $169.5 $51.5 $78.9 $300.3 

.......................................1994 996.7 52.3 298.1 306.7 339.6 338.4 84.1 150.4 52.2 57.2 314.4 

.......................................1992 1,099.1 58.6 331.5 354.1 354.9 374.9 116.0 156.0 49.7 61.2 341.3 

Return on assets (%)........................1996 1.01 0.70 0.89 1.10 1.06 1.01 0.88 0.92 0.90 2.62 0.69 

.......................................1994 0.52 0.85 0.82 0.83 -0.07 0.87 0.79 0.55 0.89 1.02 -0.09 

.......................................1992 

Net charge-offs to loans & leases (%) 

0.63 0.76 0.69 0.71 0.49 0.42 0.71 0.83 0.76 1.64 0.56 

.......................................1996 0.30 0.08 0.17 0.28 0.42 0.27 0.33 0.11 0.12 0.24 0.46 

.......................................1994 0.51 0.08 0.20 0.63 0.73 0.52 0.25 0.11 0.16 0.34 0.78 

.......................................1992 

Noncurrent assets plus 

0.57 0.27 0.42 0.67 0.67 0.88 0.45 0.24 0.43 0.32 0.48 

OREO to assets (%)***...........1996 1.23 1.03 0.98 1.46 1.28 1.42 1.33 0.58 0.63 1.16 1.47 

.......................................1994 1.96 1.37 1.63 2.07 2.25 2.46 1.31 0.67 0.74 1.86 2.44 

.......................................1992 3.87 2.26 2.94 4.11 4.75 4.88 3.07 1.36 1.47 6.66 4.01 

Equity capital ratio (%)......................1996 8.42 10.78 9.79 8.46 7.27 8.98 9.45 9.16 8.61 7.75 7.27 

.......................................1994 7.97 9.49 8.80 7.85 7.10 8.18 8.36 8.63 7.88 7.21 7.46 

.......................................1992 6.44 7.83 6.95 6.34 5.84 6.49 6.39 7.05 5.84 5.67 6.35 

*Not adjusted to reflect the migration of a $16.5 billion institution from the Southwest Region to the West Region during the first quarter of 1997. 

**Data between 1992 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

***Beginning with June 1996, TFR filers report noncurrent loans net of specific reserves. Accordingly, specific reserves have been subtracted from loan-loss

 reserves, beginning with June 1996, to make the ratio more closely comparable to prior periods. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE IV-B. Full Year 1996, FDIC-Insured Savings Institutions 

Number of institutions reporting................ 

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,924 844 919 125 36 730 278 499 145 129 143 

Total assets (in billions)............................ $1,028.2 $43.7 $270.1 $258.2 $456.1 $345.5 $63.2 $175.7 $50.3 $78.3 $315.2 

Total deposits (in billions)......................... 728.0 36.2 212.6 185.9 293.4 267.2 48.2 127.2 35.7 45.8 203.9 

Net income (in millions)............................. 6,972.0 197.9 1,737.4 1,958.0 3,078.8 2,799.5 317.2 1,151.6 288.0 1,218.1 1,197.6 

% of unprofitable institutions..................... 11.6 17.5 7.1 7.2 5.6 7.3 18.0 12.4 8.3 17.8 16.8 

% of institutions with earnings gains......... 

Performance Ratios (%) 

27.6 20.5 30.7 47.2 47.2 39.9 18.0 14.2 24.1 20.9 39.9 

Yield on earning assets............................. 7.73 7.82 7.79 7.85 7.61 7.66 8.09 7.77 7.81 7.98 7.63 

Cost of funding earning assets................. 4.51 4.30 4.32 4.43 4.69 4.15 4.48 4.67 4.76 4.94 4.66 

Net interest margin.................................... 3.22 3.52 3.47 3.43 2.93 3.50 3.61 3.10 3.05 3.03 2.97 

Noninterest income to earning assets...... 0.80 0.66 0.62 0.93 0.86 0.59 1.45 0.89 0.92 1.66 0.63 

Noninterest expense to earning assets.... 2.75 3.41 2.94 2.91 2.48 2.58 3.88 2.78 2.80 2.91 2.64 

Net operating income to assets................ 0.66 0.37 0.60 0.71 0.69 0.78 0.40 0.64 0.60 1.38 0.40 

Return on assets....................................... 0.70 0.46 0.66 0.80 0.68 0.84 0.53 0.67 0.56 1.57 0.39 

Return on equity........................................ 8.35 4.13 6.69 9.66 9.48 9.26 5.57 7.59 6.57 19.99 5.46 

Net charge-offs to loans and leases......... 0.32 0.10 0.17 0.33 0.43 0.31 0.38 0.14 0.15 0.32 0.44 

Loan loss provision to net charge-offs...... 

Condition Ratios (%) 

Loss allowance to:

118.18 170.75 140.51 119.94 111.07 105.09 157.26 149.21 149.86 123.41 112.70 

 Loans and leases.................................... 1.09 0.80 1.03 1.29 1.04 1.20 1.11 0.79 0.85 1.14 1.16

 Noncurrent loans and leases*................. 

Noncurrent assets plus

77.54 65.28 80.17 75.38 78.65 67.08 110.55 94.34 109.39 78.99 77.16 

 other real estate owned to assets........... 1.10 0.96 1.01 1.25 1.08 1.26 0.99 0.64 0.67 1.10 1.26 

Noncurrent RE loans to RE loans............. 1.28 1.07 1.14 1.61 1.21 1.71 0.79 0.73 0.69 1.41 1.33 

Equity capital ratio..................................... 8.35 11.40 9.97 8.28 7.13 9.13 9.44 8.68 8.71 8.10 7.09 

Core capital (leverage) ratio...................... 7.77 11.13 9.54 7.59 6.49 8.39 9.00 8.26 7.94 7.45 6.62 

Gross real estate assets to gross assets.. 79.66 73.03 75.17 77.23 84.35 74.41 73.25 80.22 77.56 77.76 87.22 

Gross 1-4 family mortgages to gr. assets. 48.00 52.37 47.41 40.04 52.45 43.05 46.27 52.21 50.37 36.41 53.99 

Net loans and leases to deposits.............. 

Growth Rates (year-to-year, %) 

93.60 82.78 84.70 86.77 105.71 77.83 91.01 94.84 95.73 104.81 111.20 

Assets....................................................... 0.24 - - - - -1.93 -10.75 3.40 -3.62 4.56 3.13 

Equity capital............................................. -0.28 - - - - -1.09 -11.29 -1.12 -0.97 11.42 1.96 

Net interest income................................... 5.78 - - - - -0.66 -4.64 9.01 15.53 18.17 11.36 

Net income................................................ 

Noncurrent assets plus

-8.49 - - - - -4.17 -46.61 -14.94 -34.51 59.40 -22.52 

 other real estate owned.......................... -8.43 - - - - -11.44 -22.69 24.74 5.37 -5.17 -10.88 

Net charge-offs......................................... -1.89 - - - - -19.56 141.32 8.58 -10.27 50.66 -3.65 

Loan loss provision................................... 

PRIOR FULL YEARS**

 (The way it was . . . ) 

17.89 - - - - -4.21 226.42 19.87 4.80 23.83 17.15 

Number of institutions.......................1995 2,030 910 959 130 31 754 305 522 153 137 159 

.......................................1993 2,262 1,048 1,040 146 28 826 367 568 166 147 188 

.......................................1991 2,561 1,184 1,166 182 29 909 459 620 187 163 223 

Total assets (in billions)....................1996 $1,025.7 $46.7 $278.5 $281.3 $419.2 $352.3 $70.9 $169.9 $52.2 $74.9 $305.6 

.......................................1993 1,000.9 53.4 298.8 306.8 341.9 336.6 89.1 150.8 50.9 56.9 316.6 

.......................................1991 1,113.0 58.9 334.5 380.9 338.7 377.1 122.2 155.0 49.7 63.5 345.4 

Return on assets (%)........................1995 0.77 0.67 0.80 0.84 0.72 0.88 0.87 0.85 0.98 1.05 0.51 

.......................................1993 0.70 1.00 0.93 0.62 0.52 0.68 0.71 0.97 0.98 1.58 0.38 

.......................................1991 

Net charge-offs to loans & leases (%) 

0.08 0.35 0.24 0.05 -0.10 -0.39 0.09 0.51 0.58 0.54 0.21 

.......................................1995 0.34 0.14 0.17 0.38 0.45 0.39 0.14 0.14 0.18 0.23 0.47 

.......................................1993 0.65 0.15 0.29 0.53 1.10 0.68 0.34 0.11 0.15 0.28 1.00 

.......................................1991 

Noncurrent assets plus 

0.65 0.30 0.50 0.84 0.66 1.12 0.58 0.21 0.28 0.41 0.45 

OREO to assets (%)...............1995 1.20 1.00 0.99 1.39 1.24 1.40 1.14 0.53 0.61 1.21 1.46 

.......................................1993 2.10 1.43 1.74 2.17 2.45 2.73 1.48 0.72 0.83 2.26 2.44 

.......................................1991 3.96 2.25 3.13 4.57 4.40 5.14 3.65 1.38 1.61 7.44 3.65 

Equity capital ratio (%)......................1995 8.39 10.74 9.84 8.54 7.06 9.05 9.50 9.07 8.48 7.60 7.17 

.......................................1993 7.84 9.33 8.61 7.71 7.04 7.99 7.97 8.53 7.90 7.12 7.42 

.......................................1991 6.17 7.78 6.79 5.85 5.62 6.19 6.02 6.87 5.47 4.62 6.26 

*Beginning with June 1996, TFR filers report noncurrent loans net of specific reserves. Accordingly, specific reserves have been subtracted from loan-loss

 reserves, beginning with June 1996, to make the ratio more closely comparable to prior periods. 

**Data between 1991 and 1995 does not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

March 31, 1997 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.23 2.12 1.32 1.24 1.09 1.37 1.38 1.11 1.27 1.43 1.12

 Construction, development and land.................... 1.87 2.57 1.75 1.77 2.00 1.29 1.48 2.24 2.40 1.55 2.57

 Commercial real estate......................................... 1.15 1.83 1.29 1.35 0.65 1.42 1.60 1.00 1.18 1.09 0.69

 Multifamily residential real estate.......................... 0.61 1.27 0.77 0.67 0.50 0.90 1.19 0.52 0.60 0.89 0.49

 Home equity loans................................................ 0.80 1.48 1.32 0.65 0.43 1.13 0.40 0.85 0.18 0.34 0.49

 Other 1-4 Family residential.................................. 1.30 2.18 1.35 1.33 1.19 1.42 1.40 1.13 1.34 1.52 1.25 

Commercial and industrial loans............................. 1.41 2.35 1.87 1.24 0.71 1.52 1.49 1.43 2.15 1.80 0.71 

Loans to individuals................................................. 1.93 2.52 1.94 2.38 1.43 1.90 2.81 2.13 2.26 1.18 1.62

 Credit card loans................................................... 2.21 3.00 3.66 2.73 1.74 1.79 3.45 3.22 1.64 0.86 3.91

 Other loans to individuals...................................... 

Percent of Loans Noncurrent* 

1.84 2.49 1.74 2.30 1.22 1.92 2.45 1.82 2.32 1.51 1.29 

All real estate loans................................................. 1.30 1.03 1.11 1.79 1.19 1.83 0.84 0.75 0.74 1.45 1.29

 Construction, development and land.................... 1.42 1.44 1.70 1.75 0.61 2.54 1.36 1.42 1.17 0.35 1.21

 Commercial real estate......................................... 1.98 1.53 1.55 2.64 1.81 2.55 1.05 1.29 1.15 2.57 1.70

 Multifamily residential real estate.......................... 1.49 1.33 1.30 2.92 0.71 2.84 1.07 1.18 1.22 5.55 0.84

 Home equity loans................................................ 0.40 0.45 0.51 0.39 0.31 0.58 0.17 0.35 0.07 0.18 0.32

 Other 1-4 Family residential.................................. 1.24 0.96 1.02 1.54 1.24 1.67 0.77 0.66 0.70 1.10 1.36 

Commercial and industrial loans............................. 1.58 2.28 2.09 1.51 0.77 2.14 1.79 1.17 1.52 1.28 0.53 

Loans to individuals................................................. 1.03 1.21 1.02 1.36 0.71 1.13 1.62 1.31 0.89 0.69 0.45

 Credit card loans................................................... 1.68 2.10 2.76 2.46 1.18 1.77 2.70 2.49 0.93 0.65 1.82

 Other loans to individuals...................................... 

Percent of Loans Charged-off

 (net, annualized) 

0.82 1.16 0.82 1.12 0.38 0.99 1.02 0.96 0.88 0.74 0.25 

All real estate loans................................................. 0.12 0.03 0.04 0.17 0.16 0.14 0.03 0.05 -0.12 0.11 0.20

 Construction, development and land.................... 0.10 0.11 0.14 0.11 0.03 0.18 0.06 0.11 0.05 0.05 0.12

 Commercial real estate......................................... 0.18 0.15 0.12 0.18 0.27 0.25 0.14 0.06 0.04 0.09 0.20

 Multifamily residential real estate.......................... 0.22 0.05 0.21 0.45 0.09 0.11 0.04 0.21 0.10 0.18 0.28

 Home equity loans................................................ 0.18 0.03 0.09 0.21 0.26 0.14 0.11 0.15 0.09 0.01 0.43

 Other 1-4 Family residential.................................. 0.11 0.02 0.01 0.12 0.16 0.13 0.01 0.02 -0.17 0.12 0.18 

Commercial and industrial loans............................. 0.25 0.42 0.54 0.25 -0.10 0.19 1.13 0.15 0.11 0.53 0.00 

Loans to individuals................................................. 2.20 0.52 0.88 3.40 2.13 2.06 3.43 2.62 1.42 1.70 1.90

 Credit card loans................................................... 5.42 0.36 3.89 10.57 3.98 4.78 7.80 13.00 2.86 1.94 5.01

 Other loans to individuals...................................... 

Loans Outstanding (in billions) 

1.20 0.53 0.55 2.08 0.78 1.42 1.13 0.53 1.28 1.45 1.46 

All real estate loans................................................. $627.7 $26.8 $164.0 $144.5 $292.4 $181.6 $38.6 $112.6 $30.9 $30.0 $234.1

 Construction, development and land.................... 18.3 1.2 7.9 4.6 4.6 3.7 3.3 4.1 0.9 2.8 3.5

 Commercial real estate......................................... 49.1 2.1 16.9 16.0 14.0 20.6 3.7 6.3 2.3 2.7 13.6

 Multifamily residential real estate.......................... 58.8 0.9 10.7 17.6 29.5 12.9 1.0 7.6 1.3 1.9 34.1

 Home equity loans................................................ 18.3 0.5 5.4 6.5 5.9 7.4 1.5 4.5 1.5 0.2 3.2

 Other 1-4 Family residential.................................. 483.0 22.0 123.0 99.8 238.3 136.9 29.2 90.1 25.0 22.3 179.6 

Commercial and industrial loans............................. 14.8 0.6 4.3 5.9 4.0 6.9 1.2 2.3 0.8 0.9 2.7 

Loans to individuals................................................. 46.2 1.9 10.9 16.1 17.3 14.0 5.2 9.4 3.5 7.0 7.1

 Credit card loans................................................... 11.2 0.1 1.1 3.0 7.1 2.5 1.9 2.1 0.3 3.6 0.9

 Other loans to individuals...................................... 

Memoranda: 

Other Real Estate Owned (in millions)** 

34.9 1.8 9.8 13.2 10.2 11.5 3.4 7.3 3.2 3.5 6.2 

All other real estate owned..................................... $2,333.3 $72.3 $560.6 $608.4 $1,092.0 $690.4 $208.8 $185.8 $85.5 $159.8 $1,003.0

 Construction, development and land.................... 334.1 11.8 112.8 55.1 154.4 86.7 139.8 15.2 9.4 15.5 67.5

 Commercial real estate......................................... 430.5 15.5 144.1 165.4 105.5 200.0 23.3 53.0 38.5 24.9 90.8

 Multifamily residential real estate.......................... 326.7 1.9 37.9 135.0 152.0 65.2 3.2 9.6 2.0 57.0 189.7

 1-4 Family residential............................................ 

Troubled Real Estate Asset Rates***

 (% of total RE assets) 

1,320.3 44.2 283.3 277.7 715.1 356.4 57.5 112.8 46.2 66.7 680.7 

All real estate loans................................................. 1.67 1.30 1.45 2.20 1.56 2.20 1.37 0.91 1.01 1.97 1.71

 Construction, development and land.................... 3.18 2.40 3.08 2.91 3.81 4.74 5.41 1.78 2.15 0.90 3.09

 Commercial real estate......................................... 2.84 2.24 2.38 3.67 2.54 3.50 1.67 2.11 2.80 3.56 2.35

 Multifamily residential real estate.......................... 2.04 1.52 1.64 3.65 1.22 3.33 1.41 1.30 1.38 8.27 1.39

 1-4 Family residential............................................ 1.46 1.14 1.22 1.73 1.51 1.85 0.93 0.76 0.84 1.38 1.71 

*Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status. 

**TFR filers report "All other real estate owned" net of valuation allowances, while individual categories of OREO are reported gross. 

***Noncurrent real estate loans plus other real estate owned as a percent of total real estate loans plus OREO. 
ALL FDIC-INSURED INSTITUTIONS 

• Insured Deposits Rise Despite Overall Deposit Shrinkage 

• BIF Balance Tops $27 Billion, Reserve Ratio Holds At 1.34 Percent 

• SAIF Surpasses $9 Billion, Reserve Ratio Up A Tick To 1.31 Percent 

• For The Second Consecutive Quarter, No Insured Institutions Fail 

Deposit growth in the first quarter of 1997 reflected a seasonal pattern whereby growth in insured deposits was 

more than offset by shrinkage in large-denomination domestic deposits. Insured deposits at all 11,337 FDICinsured institutions increased by $22 billion during the 

quarter, but total domestic deposits declined by $7 billion. 

Overall asset growth of $59 billion primarily was funded 

by nondeposit sources such as the purchase of federal 

funds and the sale of securities under agreement to repurchase. These liabilities increased by $76 billion during 

the three-month period. 

The Bank Insurance Fund (BIF) grew by $188 million 

from December 31 to March 31, to $27.0 billion (unaudited), as a result of investment earnings. With near-term 

insurance losses expected to remain low, the best-rated 

BIF members — 95 percent of the total — continue to pay 

nothing for deposit insurance. Members posing greater 

risk to the fund pay up to 27 cents annually per $100 of assessable deposits. Fund growth during the quarter kept 

pace with growth in insured deposits, leaving the BIF reserve ratio unchanged at 1.34 percent. 

The Savings Association Insurance Fund (SAIF) passed 

the $9 billion level (unaudited), having grown by $122 million since December 31. The fund's reserve ratio edged 

upward during the quarter, from 1.30 percent to 1.31 percent. Presently, 89.9 percent of SAIF members pay no deposit insurance premium. SAIF rates for riskier members 

also range up to 27 cents per $100 of assessable deposits. The SAIF assessment base grew by $7.1 billion during the first quarter, compared to a $4.1-billion decline in 

the fourth quarter. 

For the second consecutive quarter, no insured institution 

failed. The most recent failures occurred in August 1996. 

The number and total assets of institutions on the FDIC's 

“problem” list also continued to decline. As of March 31, 

Insurance Fund Reserve Ratios* 

Percent of Insured Deposits 

the list contained 112 commercial banks and savings institutions, with aggregate assets of $10 billion. At its peak 

in the early 1990s, the “problem” list had over 1,400 institutions, with assets exceeding $800 billion. 

“Oakar” deposits. As of March 31, 802 BIF members 

held $223 billion in SAIF-assessable deposits, compared 

to $216.7 billion on December 31. Also on March 31, 96 

SAIF members had $22.8 billion in BIF-assessable deposits, which was unchanged from December 31. The 

March 31 figures for all Oakars reflect the first quarterly 

growth adjustment of these acquired deposits, which previously had been adjusted annually. The adjustment is 

intended to maintain a constant proportion of Oakar deposits to total deposits, net of subsequent acquisitions or 

sales. 

“Sasser” institutions. During the first quarter, 14 savings associations converted to commercial or savings 

bank charters. As of March 31, there were 329 Sassers 

holding $58.1 billion in SAIF-assessable deposits. The 

relevant statute permits savings associations to switch 

charters while avoiding the costly exit and entrance fees 

associated with converting insurance fund membership 

from the SAIF to the BIF. 

FICO bonds. Prior to 1997, annual interest payments of 

$793 million on bonds issued by the Financing Corporation (FICO) had been paid only by SAIF-member savings 

associations. Now, all FDIC-insured institutions are responsible for a portion of the obligation. For the first quarter of 1997, the FICO rate for SAIF-assessable deposits 

was approximately 6.5 cents per $100, and the rate for 

BIF-assessable deposits was 1.3 cents, or one-fifth the 

SAIF rate, as set by statute. These rates may vary slightly 

in the future due to growth or shrinkage in the assessment 

bases and the level of FICO's cash reserves. 

Fund Balance and Insured Deposits* 

($ Millions) 

0 

0 21 

-0.36 

-0.01 

0 69 

1 15 

1 30 1 34 1 34 

0 00 0 01 0 04 

0 17 

0 28 

0 47 

1 30 1 31 

SAIF 

BIF 

Target Ratio 1 25 BIF Fund BIF-Insured SAIF Fund SAIF-Insured 

Balance Deposits Balance Deposits 

12/90 4,045 1,929,612 18 830,028 

12/91 -7,028 1,957,722 101 776,351 

12/92 -101 1,945,550 279 732,159 

12/93 13,122 1,905,245 1,157 697,885 

12/94 21,848 1,895,258 1,937 693,610 

12/95 25,454 1,951,963 3,358 711,897 

12/96 26,854 2,008,234 8,888 682,284 

3/97 27,042 2,024,297 9,010 688,308 

12/90 12/91 12/92 12/93 12/94 12/95 12/96 3/97 * Insured deposit amounts are estimates 3/97 fun balance ar unaudited 

* Insurance fund balance as a percent of total insured deposits 

FDIC Quarterly Banking Profile 

First Quarter 1997 15 All FDIC-Insured Institutions 
 

 

Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

March 31, 1997* 

(dollar figures in millions) Number of 

Institutions 

Total 

Assets 

Domestic

Deposits** 

 Estimated Insured Deposits 

BIF SAIF Total 

Private-Sector Commercial and Savings Institutions

 FDIC-Insured Commercial Banks.................................................................... 9,451 4,641,730 2,718,562 1,843,495 183,374 2,026,869

 BIF-member................................................................................................ 9,362 4,603,457 2,689,881 1,833,607 170,572 2,004,180

 SAIF-member................................................................................................. 89 38,273 28,681 9,888 12,802 22,689

 FDIC-Insured Savings Institutions...................................................................... 1,886 1,023,390 726,124 179,176 504,934 684,110

 OTS-Supervised Savings Institutions............................................................ 1,300 767,499 528,784 48,540 449,566 498,106

 BIF-member................................................................................................. 27 115,151 77,875 36,404 37,933 74,337

 SAIF-member*............................................................................................. 1,273 652,348 450,909 12,135 411,634 423,769

 FDIC-Supervised State Savings Banks......................................................... 586 255,891 197,340 130,636 55,368 186,004

 BIF-member................................................................................................ 346 198,199 153,775 129,901 14,517 144,418

 SAIF-member.............................................................................................. 240 57,693 43,565 735 40,851 41,586 

Total Private-Sector Commercial and

 Savings Institutions..................................................................................... 11,337 5,665,120 3,444,685 2,022,671 688,308 2,710,979

 BIF-member..................................................................................................... 9,735 4,916,806 2,921,531 1,999,913 223,022 2,222,935

 SAIF-member..................................................................................................... 1,602 748,314 523,155 22,758 465,286 488,045 

Other FDIC-Insured Institutions 

 U.S. Branches of Foreign Banks ............................................................................................ 31 ............. 8,567 3,066 1,626 0 1,626 

Total FDIC-Insured Institutions...................................................................................11,368 . 5,673,688 3,447,751 2,024,297 688,308 2,712,605 

*Excludes one self-liquidating savings institution with less than $1 million in SAIF-insured deposits. 

**Excludes $475.9 billion in foreign office deposits, which are uninsured. 

SAIF Assessment Base 

$ Billions December 31, 1989 - March 31, 1997 

1,000 

RTC Conservatorships 

Sasser Institutions 

0 

($ Billions) 

Sasser Institutions 0.0 2.8 11.9 28.4 42.8 52.0 56.2 57.2 58.7

Oakar Deposits (BIF-members) 2.1 34.0 69.8 80.5 139.9 181.9 220.1 216.8 223.2

RTC Conservatorships 89.0 67.3 36.9 31.2 17.7 1.2 0.0 0.0 0.0

All Other Institutions 851.6 766.0 693.2 615.2 520.3 479.2 459.0 434.0 433.1

Total 942.8 870.0 811.7 755.3 720.7 714.4 735.3 707.9 715.0

Oakar Deposits

 (BIF-members) 

All Other Institutions 

12/89 12/90 12/91 12/92 12/93 12/94 12/95 12/96 03/97 
 

TABLE I-C. Selected Indicators, All FDIC-Insured Institutions* 

(dollar figures in millions) 1997** 1996** 1996 1995 1994 1993 

Number of institutions reporting...................................... 11,337 11,843 11,452 11,970 12,603 13,220 

Total assets..................................................................... $5,665,120 $5,324,817 $5,606,543 $5,338,423 $5,019,085 $4,707,055 

Total deposits.................................................................. 3,920,537 3,760,519 3,925,150 3,769,481 3,611,619 3,528,486 

Number of problem institutions....................................... 112 169 117 193 318 572 

Assets of problem institutions (in billions)....................... $10 $27 $12 $31 $73 $334 

Number of failed/assisted institutions............................. 0 1 6 8 15 50 

Assets of failed/assisted institutions (in billions)............. $0.00 $0.04 $0.22 $1.21 $1.57 $9.67 

**As of March 31. 

TABLE II-C. Aggregate Condition and Income Data, All FDIC-Insured Institutions* 

(dollar figures in millions) 

Number of institutions reporting.............................................. 

Preliminary 

1st Quarter 4th Quarter 1st Quarter % Change 

1997 1996 1996 96:1-97:1 

11,337 11,452 11,843 -4.3 

Total employees (full-time equivalent).................................... 

CONDITION DATA 

1,746,847 1,741,974 1,721,938 1.4 

Total assets............................................................................. $5,665,120 $5,606,543 $5,324,817 6.4

 Loans secured by real estate............................................ 1,783,623 1,776,324 1,699,704 4.9

 1-4 Family residential.................................................... 1,166,865 1,157,590 1,109,389 5.2

 Home equity loans....................................................... 105,017 103,538 95,708 9.7

 Multifamily residential property...................................... 97,659 97,691 95,546 2.2

 Commercial real estate................................................. 368,058 366,046 351,145 4.8

 Construction, development and land............................. 96,715 101,827 91,866 5.3

 Other real estate loans.................................................. 54,327 53,170 51,759 5.0

 Commercial & industrial loans........................................... 746,962 724,718 689,188 8.4

 Loans to individuals........................................................... 589,908 606,877 565,304 4.4

 Credit cards & related plans............................................ 227,102 241,766 211,625 7.3

 Other loans & leases......................................................... 348,603 407,906 350,034 -0.4

 Less: Unearned income & contra accounts...................... 5,381 15,883 15,114 -64.4

 Total loans & leases............................................................ 3,463,715 3,499,942 3,289,117 5.3

 Less: Reserve for losses..................................................... 60,473 61,130 60,152 0.5

 Net loans & leases................................................................ 3,403,242 3,438,811 3,228,965 5.4

 Securities .............................................................................. 1,071,188 1,063,237 1,090,914 -1.8

 Other real estate owned........................................................ 6,996 7,198 8,874 -21.2

 Goodwill and other intangibles.............................................. 64,137 52,774 39,201 63.6

 All other assets...................................................................... 1,119,557 1,044,522 956,863 17.0 

Total liabilities and capital....................................................... 5,665,117 5,606,543 5,324,817 6.4

 Deposits................................................................................ 3,920,537 3,925,150 3,760,519 4.3

 Other borrowed funds............................................................ 951,133 916,928 839,392 13.3

 Subordinated debt................................................................. 54,694 53,568 47,820 14.4

 All other liabilities................................................................... 263,226 249,815 238,044 10.6

 Equity capital......................................................................... 475,528 461,081 439,042 8.3 

Loans and leases 30-89 days past due.................................. 46,926 47,726 43,202 8.6 

Noncurrent loans and leases.................................................. 37,996 38,024 40,473 -6.1 

Restructured loans and leases................................................ 7,864 8,275 9,225 -14.8 

Direct and indirect investments in real estate......................... 1,247 1,249 886 40.7 

Mortgage-backed securities.................................................... 533,405 529,123 543,101 -1.8 

Earning assets......................................................................... 4,978,818 4,912,515 4,709,657 5.7 

Unused loan commitments...................................................... 

Including IBA's:***

2,799,108 2,676,206 2,375,418 17.8 

 Estimated BIF-insured deposits........................................... 2,024,297 2,008,234 1,959,260 3.3

 Assessment base.............................................................. 2,635,224 2,642,878 2,473,751 6.5

 BIF balance (unaudited figures)........................................ 27,042 26,854 25,748 5.0

 BIF reserve ratio (%)......................................................... 1.34 1.34 1.31 1.7

 Estimated SAIF-insured deposits......................................... 688,308 682,284 715,834 -3.8

 Assessment base.............................................................. 715,039 707,942 738,480 -3.2

 SAIF balance (unaudited figures)...................................... 9,010 8,888 3,650 146.8

 SAIF reserve ratio (%)....................................................... 1.31 1.30 0.51 156.7

 Estimated FDIC-insured deposits, BIF and SAIF................. 2,712,605 2,690,518 2,675,094 1.4 

INCOME DATA 

Total interest income............................................. 

Total interest expense........................................... 

 Net interest income............................................. 

Provision for loan losses....................................... 

Total noninterest income....................................... 

Total noninterest expense..................................... 

Securities gains (losses)....................................... 

Applicable income taxes....................................... 

Extraordinary gains, net........................................ 

 Net income.......................................................... 

Preliminary 

Full Year Full Year 1st Quarter 1st Quarter %Change 

1996 1995 %Change 1997 1996 96:1-97:1 

$385,073 $373,379 3.1 $99,611 $95,853 3.9 

192,187 190,701 0.8 49,667 48,418 2.6

192,886 182,677 5.6 49,944 47,436 5.3 

18,774 14,720 27.5 4,876 4,121 18.3 

101,084 89,547 12.9 26,546 24,103 10.1 

186,408 171,564 8.7 46,005 46,088 -0.2 

1,997 1,004 98.9 661 833 -20.6 

31,297 30,283 3.3 9,371 7,668 22.2 

(158) (295) N/M (17) 71 N/M

59,329 56,366 5.3 16,883 14,565 15.9 

*Excludes institutions in RTC conservatorship, one self-liquidating savings institution, insured branches of foreign banks (IBA's), unless indicated otherwise. 

***Reserve ratios reflect the insurance fund balance as a percentage of estimated insured deposits. N/M-Not meaningful 
TABLE I-D. Selected Indicators, BIF-Member Depository Institutions* 

(dollar figures in millions) 1997** 1996** 1996 1995 1994 1993 

Number of institutions reporting...................................... 9,735 10,138 9,822 10,242 10,759 11,291 

Total assets..................................................................... 4,916,806 4,570,231 4,855,796 4,576,266 4,246,785 3,949,694 

Total deposits.................................................................. 3,397,149 3,223,162 3,402,656 3,224,307 3,061,457 2,951,979 

Number of problem institutions....................................... 80 131 86 151 264 472 

Assets of problem institutions (in billions)....................... $6 $16 $7 $20 $42 $269 

Number of failed/assisted institutions............................. 0 1 5 6 13 41 

Assets of failed/assisted institutions (in billions)............. $0.00 $0.04 $0.19 $0.76 $1.43 $3.54 

**As of March 31. 

TABLE II-D. Selected Aggregate Condition and Income Data, BIF-Member Depository Institutions* 

(dollar figures in millions) 

Number of institutions reporting.............................................. 

Preliminary 

1st Quarter 4th Quarter 1st Quarter % Change 

1997 1996 1996 96:1-97:1 

9,735 9,822 10,138 -4.0

 Commercial banks................................................................. 9,362 9,441 9,755 -4.0

 Savings institutions................................................................ 373 381 383 -2.6 

Total employees (full-time equivalent).................................... 

CONDITION DATA 

1,554,457 1,548,539 1,529,387 1.6 

Total assets............................................................................. $4,916,806 $4,855,796 $4,570,231 7.6

 Loans secured by real estate, total....................................... 1,323,553 1,307,216 1,239,233 6.8

 1-4 Family residential.......................................................... 795,453 785,255 743,171 7.0

 Multifamily residential property............................................ 60,320 59,579 56,189 7.4

 Commercial real estate....................................................... 333,233 330,819 316,745 5.2

 Construction, development and land................................... 80,413 78,577 71,525 12.4

 Commercial & industrial loans............................................... 734,776 712,997 679,020 8.2

 Reserve for losses............................................................... 55,607 55,835 55,092 0.9

 Total deposits........................................................................ 3,397,149 3,402,656 3,223,162 5.4

 Domestic deposits................................................................. 2,921,531 2,929,194 2,768,789 5.5

 Estimated insured deposits................................................... 2,222,935 2,200,535 2,168,861 2.5

 BIF-insured deposits (estimated)........................................ 1,999,913 1,983,875 1,938,060 3.2

 SAIF-insured deposits (estimated)...................................... 223,022 216,660 230,801 -3.4

 Noncurrent loans and leases................................................ 31,562 31,717 33,878 -6.8

 Other real estate owned........................................................ 5,246 5,396 6,755 -22.3

 Equity capital......................................................................... 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions:

413,898 399,457 375,964 10.1 

 Well capitalized..................................................................... 9,564 9,652 9,980 -4.2

 Adequately capitalized.......................................................... 157 149 135 16.3

 Undercapitalized.................................................................... 6 12 17 -64.7

 Significantly undercapitalized................................................ 6 7 3 100.0

 Critically undercapitalized...................................................... 

Total assets:

2 2 3 -33.3 

 Well capitalized..................................................................... $4,881,833 $4,826,345 $4,492,424 8.7

 Adequately capitalized.......................................................... 33,430 24,590 74,972 -55.4

 Undercapitalized.................................................................... 869 3,768 2,478 -64.9

 Significantly undercapitalized ............................................... 597 1,036 209 185.0

 Critically undercapitalized...................................................... 78 57 148 -47.4 

INCOME DATA 

Preliminary 

Full Year Full Year 1st Quarter 1st Quarter %Change 

1996 1995 %Change 1997 1996 96:1-97:1 

Net interest income............................................... $170,952 $161,997 5.5 $44,248 $41,904 5.6 

Provision for loan losses....................................... 16,878 13,148 28.4 4,457 3,703 20.4 

Net income............................................................ 54,478 50,765 7.3 15,095 12,671 19.1 

Net charge-offs...................................................... 16,122 12,890 25.1 4,162 3,730 11.6 

Number of institutions reporting net losses........... 404 359 12.5 382 337 13.4 

*Excludes insured branches of foreign banks. 
TABLE I-E. Selected Indicators, SAIF-Member Depository Institutions* 

(dollar figures in millions) 1997** 1996** 1996 1995 1994 1993 

Number of institutions reporting...................................... 1,602 1,705 1,630 1,728 1,844 1,929 

Total assets..................................................................... 748,314 754,586 750,746 762,157 772,299 757,362 

Total deposits.................................................................. 523,388 537,357 522,494 545,174 550,162 576,507 

Number of problem institutions....................................... 32 38 31 42 54 100 

Assets of problem institutions (in billions)....................... $5 $11 $6 $11 $31 $65 

Number of failed/assisted institutions............................. 0 0 1 2 2 9 

Assets of failed/assisted institutions (in billions)............. $0.00 $0.00 $0.03 $0.46 $0.14 $6.00 

**As of March 31. 

TABLE II-E. Selected Aggregate Condition and Income Data, SAIF-Member Depository Institutions* 

(dollar figures in millions) 

Number of institutions reporting.............................................. 

Preliminary 

1st Quarter 4th Quarter 1st Quarter % Change 

1997 1996 1996 96:1-97:1 

1,602 1,630 1,705 -6.0

 Commercial banks................................................................. 89 87 83 7.2

 Savings institutions................................................................ 1,513 1,543 1,622 -6.7 

Total employees (full-time equivalent).................................... 

CONDITION DATA 

192,390 193,435 192,551 -0.1 

Total assets............................................................................. $748,314 $750,746 $754,586 -0.8

 Loans secured by real estate, total....................................... 460,071 469,108 460,471 -0.1

 1-4 Family residential.......................................................... 371,412 372,335 366,218 1.4

 Multifamily residential property............................................ 37,339 38,112 39,357 -5.1

 Commercial real estate....................................................... 34,825 35,227 34,400 1.2

 Construction, development and land................................... 16,302 23,250 20,341 -19.9

 Commercial & industrial loans............................................... 12,185 11,721 10,168 19.8

 Reserve for losses............................................................... 4,867 5,295 5,060 -3.8

 Total deposits........................................................................ 523,388 522,494 537,357 -2.6

 Domestic deposits................................................................. 523,155 522,411 537,298 -2.6

 Estimated insured deposits................................................... 488,045 488,412 504,367 -3.2

 BIF-insured deposits (estimated)........................................ 22,758 22,788 19,335 17.7

 SAIF-insured deposits (estimated)...................................... 465,286 465,624 485,032 -4.1

 Noncurrent loans and leases................................................ 6,434 6,308 6,595 -2.4

 Other real estate owned........................................................ 1,750 1,802 2,118 -17.4

 Equity capital......................................................................... 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions:

61,630 61,624 63,078 -2.3 

 Well capitalized..................................................................... 1,549 1,581 1,662 -6.8

 Adequately capitalized.......................................................... 49 47 38 28.9

 Undercapitalized.................................................................... 2 1 4 -50.0

 Significantly undercapitalized................................................ 1 1 1 0.0

 Critically undercapitalized...................................................... 

Total assets:

1 0 0 0.0 

 Well capitalized..................................................................... $732,945 $733,507 $740,760 -1.1

 Adequately capitalized.......................................................... 15,058 17,176 13,048 15.4

 Undercapitalized.................................................................... 98 49 743 -86.8

 Significantly undercapitalized ............................................... 203 14 35 477.8

 Critically undercapitalized...................................................... 10 0 0 0.0 

INCOME DATA 

Preliminary 

Full Year Full Year 1st Quarter 1st Quarter %Change 

1996 1995 %Change 1997 1996 96:1-97:1 

Net interest income............................................... $21,934 $20,680 6.1 $5,696 $5,531 3.0 

Provision for loan losses....................................... 1,895 1,573 20.5 418 418 0.1 

Net income............................................................ 4,851 5,601 -13.4 1,788 1,894 -5.6 

Net charge-offs...................................................... 1,518 1,463 3.8 328 348 -5.8 

Number of institutions reporting net losses........... 221 113 95.6 71 99 -28.3 

*Data between 1993 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 
Number of FDIC-Insured "Problem" Institutions 

1992 - 1997 

Number of Institutions 

12/92 12/93 12/94 3/95 6/95 9/95 12/95 3/96 6/96 9/96 12/96 3/97 

Savings Institutions 276 146 71 71 64 59 49 42 38 36 35 35 

Commercial Banks 787 426 247 215 190 158 144 127 99 89 82 77 

Assets of FDIC-Insured "Problem" Institutions 

1992 - 1997 

$ Billions 

Savings Institutions 

Commercial Banks 

0 

500 

1,000 

1,500 

2,000 

1,063 

572 

318 286 254 217 193 169 137 125 117 112 

Savings Institutions 

Commercial Banks 

0 

200 

400 

600 

800 

1,000 

$592 

$334 

$72 $66 $56 $37 $31 $27 $18 $15 $12 $10 

12/92 12/93 12/94 3/95 6/95 9/95 12/95 3/96 6/96 9/96 12/96 3/97 

Savings Institutions 184 92 39 39 33 17 14 13 10 8 7 5 

Commercial Banks 408 242 33 27 23 20 17 13 8 7 5 5 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 First Quarter 1997 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

time. The information presented in the FDIC Quarterly Banking Profile is divided into the following groups of institutions: 

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

either through the Bank Insurance Fund (BIF) or through the 

Savings Association Insurance Fund (SAIF). These institutions are regulated by and submit financial reports to one of 

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

in conservatorship. The institutions covered in this section 

are regulated by and submit financial reports to one of two 

Federal regulators – the FDIC or the Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through II-E.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution's deposits. 

Therefore, the BIF-member and the SAIF-member tables 

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either the 

BIF or SAIF are not included in the FDIC Quarterly Banking 

Profile. U.S. branches of institutions headquartered in foreign 

countries and non-deposit trust companies are not included 

unless otherwise indicated. Efforts are made to obtain financial reports for all active institutions. However, in some cases, 

final financial reports are not available for institutions that 

have closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC's Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports. Beginning in March 1997, both Thrift Financial Reports and Call 

Reports are completed on a fully consolidated basis. Previously, the consolidation of subsidiary depository institutions 

was prohibited. Now, parent institutions file consolidated 

reports, while their subsidiary financial institutions continue to 

file separate reports. Data from subsidiary institution reports 

are included in the Quarterly Banking Profile tables, which 

can lead to double-counting. No adjustments are made for 

any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginningof-period amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions 

in the current period. Tables III and IV do not provide growth 

rates for the “Asset Size Distribution” since many institutions 

migrate between size groups. 

All data are collected and presented based on the location of 

each reporting institution's main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution's home state. Also, when a main office is relocated 

to another region, no adjustments are made to regional 

growth rates. In addition, institutions may change their charters, resulting in an inter-industry migration, e.g., savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. These situations 

can affect state and regional statistics. 

RECENT ACCOUNTING CHANGES 

Adoption of GAAP Reporting – Effective with the March 31, 

1997 Call Reports, generally accepted accounting principles 

(GAAP) were adopted as the reporting basis for the balance 

sheet, income statement and supporting schedules. New 

reporting instructions changed the amounts reported for a 

number of items used in the Quarterly Banking Profile, so that 

comparability with prior periods may be affected. Among the 

items most significantly affected by the new reporting rules 

are: loans & leases, reserve for losses, goodwill and other 

intangibles, all other assets and equity capital (see definitions 

below). More information on changes to the March 31, 1997 

Call Report is contained in Financial Institution Letter FIL-27-

97, which is available through the FDIC World Wide Web site 

at www.fdic.gov/banknews/fils/1997/fil9727.html, or from the 

FDIC Public Information Center, 801 17th Street, NW, Washington, DC 20434; telephone (800) 276-6003. Information on 

changes to the March 31, 1997 Thrift Financial Reports is 

available from the Office of Thrift Supervision, 1700 G Street, 

NW, Washington, DC 20552; telephone (202) 906-5900. 

Subchapter S Corporations –The Small Business Job Protection Act of 1996 changed the Internal Revenue Code to 

allow financial institutions to elect Subchapter S corporation 

status, beginning in 1997. A Subchapter S corporation is 

treated as a pass-through entity, similar to a partnership, for 

federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. Its taxable 

FDIC Quarterly Banking Profile 

First Quarter 1997 21 Notes to Users 
income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

income taxes on their share of this taxable income. This can 

have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

The election of Subchapter S status may result in an increase 

in shareholders’ personal tax liability. Therefore, some S corporations may increase the amount of earnings distributed as 

dividends to compensate for higher personal taxes. 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers' liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities purchased with 

agreements to resell, and other assets. Beginning 3/31/97, 

Federal funds sold are reported on a consolidated basis 

(domestic and foreign offices combined). Previously, Federal 

funds sold through foreign offices were reported as loans. 

All other liabilities – bank's liability on acceptances, limitedlife preferred stock, and other liabilities. 

BIF-insured deposits (estimated) – the amount of deposits 

in accounts of less than $100,000 insured by the BIF. For 

SAIF-member “Oakar” institutions, it represents the adjusted 

attributable amount acquired from BIF members. 

Capital category distribution – each institution's capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized ≥10 and ≥6 and ≥5 — 

Adequately 

capitalized ≥8 and ≥4 and ≥4 — 

Undercapitalized ≥6 and ≥3 and ≥3 — 

Significantly 

undercapitalized <6 or <3 or <3 and >2 

Critically 

undercapitalized — — — ≤2 

*As a percentage of risk-weighted assets. 

Construction and development loans – includes loans for 

all property types under construction, as well as loans for land 

acquisition and development. 

Core capital – common equity capital plus noncumulative 

perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible assets. The amount of eligible intangibles (including 

servicing rights) included in core capital is limited in accordance with supervisory capital regulations. 

Cost of funding earning assets – total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Derivative contracts, gross fair values (positive/negative) – are reported separately and represent the amount at 

which a contract could be exchanged in a transaction 

between willing parties, other than in a forced or liquidation 

sale. If a quoted market price is available for a contract, the 

fair value reported for that contract is calculated using this 

market price. If quoted market prices are not available, the 

reporting banks use the best estimate of fair value based on 

quoted market prices of similar contracts or on valuation techniques such as discounted cash flows. This information is 

reported only by banks with assets greater than $100 million. 

Direct and indirect investments in real estate – excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets – all loans and other investments that earn 

interest or dividend income. 

Estimated insured deposits – estimated amount of insured 

deposits (account balances less than $100,000). The sum of 

all deposit balances in accounts of less than $100,000 plus 

the number of accounts with balances greater than $100,000 

multiplied by $100,000. 

Failed/assisted institutions – an institution fails when regulators take control of the institution, placing the assets and 

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

to provide funds to cover losses. An institution is defined as 

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

FHLB advances – borrowings from the Federal Home Loan 

Bank (FHLB) reported by institutions that file a Thrift Financial 

Report. Institutions that file a Call Report do not report borrowings ( “advances”) from the FHLB separately. 

Goodwill and other intangibles – intangible assets include 

servicing rights, purchased credit card relationships and 

other identifiable intangible assets. 

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties and 

all other loans secured by real estate. 

Loans to individuals – includes outstanding credit card balances and other secured and unsecured consumer loans. 

Long-term assets (5+ years) – loans and debt securities 

with remaining maturities or repricing intervals of over five 

years. 

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

or private enterprises. Also, see “Securities”, below. 

Net charge-offs – total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin – the difference between interest and 

dividends earned on interest-bearing assets and interest paid 

to depositors and other creditors, expressed as a percentage 

of average earning assets. No adjustments are made for 

interest income that is tax exempt. 

Net operating income – income excluding discretionary 

transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from operating income have been adjusted to exclude 

the portion applicable to securities gains (or losses). 

Noncurrent assets – the sum of loans, leases, debt securities and other assets that are 90 days or more past due, or in 

nonaccrual status. 

Noncurrent loans & leases – the sum of loans and leases 

90 days or more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting – the number of institutions that actually filed a financial report. 

FDIC Quarterly Banking Profile 

Notes to Users 22 First Quarter 1997 
Off-balance-sheet derivatives – represents the sum of the 

following: interest-rate contracts (defined as the notional 

value of interest-rate swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts and equity contracts (defined similarly to interest-rate 

contracts). 

Futures and forward contracts – a contract in which the 

buyer agrees to purchase and the seller agrees to sell, at a 

specified future date, a specific quantity of underlying at a 

specified price or yield. These contracts exist for a variety of 

underlyings, including the traditional agricultural or physical 

commodities, as well as currencies and interest rates. Futures contracts are standardized and are traded on organized 

exchanges which set limits on counterparty credit exposure. 

Forward contracts do not have standardized terms and are 

traded over the counter. 

Option contracts – a contract in which the buyer acquires 

the right to buy from or sell to another party some specified 

amount of underlying at a stated price (strike price) during a 

period or on a specified future date, in return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the underlying at the discretion of the buyer of 

the contract. 

Swaps – an obligation between two parties to exchange a series of cash flows at periodic intervals (settlement dates), for 

a specified period. The cash flows of a swap are either fixed, 

or determined for each settlement date by multiplying the 

quantity of the underlying (notional principal) by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not 

exchanged. 

Other borrowed funds – federal funds purchased, securities sold with agreements to repurchase, demand notes 

issued to the U.S. Treasury, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts. 

Other real estate owned – primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains – the percent 

of institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

“Problem” institutions – federal regulators assign a composite rating to each financial institution, based upon an 

evaluation of financial and operational criteria. The rating is 

based on a scale of 1 to 5 in ascending order of supervisory 

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that 

threaten their continued financial viability. Depending upon 

the degree of risk and supervisory concern, they are rated 

either a “4” or “5”. For all BIF-member institutions, and for all 

SAIF-member institutions for which the FDIC is the primary 

federal regulator, FDIC composite ratings are used. For all 

SAIF-member institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Reserves for losses – the allowance for loan and lease 

losses and the allocated transfer risk reserve on a consolidated basis. Prior to March 31, 1997, institutions filing a Thrift 

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

31, 1997, the allowance for off-balance-sheet credit exposures was moved to “Other liabilities”; previously, it had been 

included in the general valuation allowance. 

Restructured loans and leases – loan and lease financing 

receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms. 

Return on assets – net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total assets. The basic yardstick of bank profitability. 

Return on equity – net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total equity capital. 

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 100 percent. A conversion factor is used to 

assign a balance sheet equivalent amount for selected offbalance-sheet accounts. 

SAIF-insured deposits (estimated) – the amount of deposits in accounts of less than $100,000 insured by the SAIF. For 

BIF-member “Oakar” institutions, it represents the adjusted 

attributable amount acquired from SAIF members. 

Securities – excludes securities held in trading accounts. 

Banks' securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) – realized gains (losses) on heldto-maturity and available-for-sale securities, before adjustments for income taxes. Thrift Financial Report (TFR) filers 

also include gains (losses) on the sales of assets held for 

sale. 

Troubled real estate asset rate – noncurrent real estate 

loans plus other real estate owned as a percent of total real 

estate loans and other real estate owned. 

Unearned income & contra accounts – unearned income 

and loans-in-process for TFR filers. Beginning March 31 

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the unearned 

income on loans reported by Call Report filers. 

Unused loan commitments – includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities – the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets – total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

First Quarter 1997 23 Notes to Users